Business description of Public-Service-Enterprise-Group-Incorporated

As of and for the Year Ended December 31, 2009


Earnings (Losses) in millions	2009		2008			2007

Power	$	1,189	$	1,115		$	1,000
PSE&G		325		364			380
Energy Holdings		72		(468	)		12
Other		6		(28	)		(67	)

PSEG Income from Continuing Operations	$	1,592	$	983		$	1,325


Generation by Fuel Type		Actual 2009

Nuclear:
New Jersey facilities		35%
Pennsylvania facilities		16%
Fossil:
Coal:
New Jersey facilities		5%
Pennsylvania facilities		8%
Connecticut facilities		2%
Oil and Natural Gas:
New Jersey facilities		15%
New York facilities		6%
Texas facilities		13%

Total		100%


Unit		Capacity Factor

Salem Unit 1		99.1%
Salem Unit 2		92.0%
Hope Creek		91.2%
Peach Bottom Unit 2		99.3%
Peach Bottom Unit 3		86.9%


Delivery Year	MW-day		kW-yr

June 2008 to May 2009	$	148.80	$	54.31
June 2009 to May 2010	$	191.32	$	69.83
June 2010 to May 2011	$	174.29	$	63.62
June 2011 to May 2012	$	110.00	$	40.16
June 2012 to May 2013	$	139.73	$	51.70


Load Zone ($/MWh)	2006-2009		2007-2010		2008-2011		2009-2012		2010-2013

PSE&G	$	102.51	$	98.88	$	111.50	$	103.72	$	95.77
Jersey Central Power and Light	$	100.44	$	99.64	$	114.09	$	103.51	$	95.17
Atlantic City Electric	$	103.99	$	99.59	$	116.50	$	105.36	$	98.56
Rockland Electric Company	$	111.14	$	109.99	$	120.49	$	112.70	$	103.32


Nuclear and Coal Generation	2010	2011	2012

Generation Sales	90%-95%	50%-60%	15%-30%
Nuclear Fuel Purchases	100%	100%	100%
Coal Supply and Transportation Costs	95%-100%	30%-40%	5%-10%


Transmission Statistics
December 31, 2009		Historical Annual Growth 2005-2009
Network Circuit Miles	Billing Peak (MW)	Historical Annual Growth 2005-2009

1,442	9,687	0.50%


	% of 2009 Sales
Customer Type	Electric	Gas

Commercial	58%	36%
Residential	31%	60%
Industrial	11%	4%

Total	100%	100%


Electric and Gas Distribution Statistics
	December 31, 2009		Historical Annual Load Growth 2005-2009
	Number of Customers	Electric Sales and Gas Sold and Transported	Historical Annual Load Growth 2005-2009

Electric	2.1 Million	41,961 GWh	-0.6%
Gas	1.7 Million	3,500 Million Therms	-0.4%


Employees as of December 31, 2009
	Power	PSE&G	Energy Holdings	Services

Non-Union	1,345	1,325	20	1,035
Union	1,561	5,057	—	9

Total Employees	2,906	6,382	20	1,044

Number of Union Groups	3	5	n/a	1


Unit		Year

Salem Unit 1		2016
Salem Unit 2		2020
Hope Creek		2026
Peach Bottom Unit 2		2033
Peach Bottom Unit 3		2034


Rate Clause	2009 Revenue		(Over) Under Recovered Balance as of December 31, 2009
	Millions
Energy Efficiency and Renewable Energy	$	197	$	(4	)
Remediation Adjustment Charges (RAC)		18		137
USF		179		8
Social Programs		54		47

Total SBC		448		188
NGC		102		86

Total	$	550	$	274


	2007		2008		2009		2010

36 Month Term Ending		May 2010		May 2011		May 2012		May 2013
Load (MW)		2,758		2,800		2,900		2,800
$ per kWh	$	0.09888	$	0.11150	$	0.10372	$	0.09577

Name

Location

Total
Capacity
(MW)

%
Owned

Owned
Capacity
(MW)

Principal
Fuels
Used

Mission

Steam:

Hudson

930

100%

930

Coal/Gas

Load Following

Mercer

638

100%

638

Coal

Load Following

Sewaren

453

100%

453

Gas

Load Following

Keystone(A)

1,711

23%

391

Coal

Base Load

Conemaugh(A)

1,711

23%

385

Coal

Base Load

Bridgeport Harbor

526

100%

526

Coal/Oil

Base Load/Load Following

New Haven Harbor

448

100%

448

Oil

Load Following

Total Steam

6,417

3,771

Nuclear:

Hope Creek

1,199

100%

1,199

Nuclear

Base Load

Salem 1 & 2

2,345

57%

1,346

Nuclear

Base Load

Peach Bottom 2 & 3(B)

2,234

50%

1,117

Nuclear

Base Load

Total Nuclear

5,778

3,662

Combined Cycle:

Bergen

1,178

100%

1,178

Gas

Load Following

Linden

1,230

100%

1,230

Gas

Load Following

Bethlehem

746

100%

746

Gas

Load Following

Guadalupe

1,000

100%

1,000

Gas

Load Following

Odessa

1,000

100%

1,000

Gas

Load Following

Total Combined Cycle

5,154

Combustion Turbine:

Essex

617

100%

617

Gas

Peaking

Edison

504

100%

504

Gas

Peaking

Kearny

446

100%

446

Gas

Peaking

Burlington

553

100%

553

Oil/Gas

Peaking

Linden

336

100%

336

Gas

Peaking

Mercer

115

100%

115

Oil

Peaking

Sewaren

105

100%

105

Oil

Peaking

Bergen

100%

Gas

Peaking

National Park

100%

Oil

Peaking

Salem

57%

Oil

Peaking

Bridgeport Harbor

100%

Oil

Peaking

Total Combustion Turbine

2,777

2,761

Pumped Storage:

Yards Creek(C)

400

50%

200

Peaking

Total Operating Generation Plants

20,526

15,548


Name	Location	Total Capacity (MW)	% Owned	Owned Capacity (MW)	Principal Fuels Used

United States
Kalaeloa	HI	208	50%	104	Oil
GWF	CA	105	50%	53	Petroleum coke
Hanford L.P. (Hanford)	CA	27	50%	13	Petroleum coke
GWF Energy
Hanford—Peaker Plant	CA	95	50%	48	Natural gas
Henrietta—Peaker Plant	CA	97	50%	49	Natural gas
Tracy—Peaker Plant	CA	171	50%	85	Natural gas

Total GWF Energy(A)		363		182
Bridgewater	NH	16	40%	6	Biomass
Conemaugh	PA	15	4%	1	Hydro
Hackettstown	NJ	2	100%	2	Solar

Total United States		736		361

International
Turboven	Venezuela	120	50%	60	Natural gas
Turbogeneradores de Maracay (TGM)	Venezuela	40	9%	4	Natural gas

Total International		160		64

Total Operating Power Plants		896		425


Plant	Location	Daily Capacity (Therms)

Burlington LNG	Burlington, NJ	773,000
Camden LPG	Camden, NJ	280,000
Central LPG	Edison Twp., NJ	960,000
Harrison LPG	Harrison, NJ	960,000

Total		2,973,000


	2004		2005		2006		2007		2008		2009

PSEG	$	100.00	$	130.18	$	137.78	$	209.33	$	128.84	$	153.13
S&P 500	$	100.00	$	104.90	$	121.43	$	128.09	$	80.77	$	102.08
DJ Utilities	$	100.00	$	124.95	$	145.75	$	174.99	$	126.37	$	142.06
S&P Electrics	$	100.00	$	117.53	$	144.74	$	178.14	$	132.19	$	136.61


Common Stock	High	Low	Dividend per Share

2009
First Quarter	$33.66	$23.65	$0.3325
Second Quarter	$33.94	$27.85	$0.3325
Third Quarter	$34.02	$30.38	$0.3325
Fourth Quarter	$34.14	$29.20	$0.3325
2008
First Quarter	$52.30	$39.08	$0.3225
Second Quarter	$47.28	$40.18	$0.3225
Third Quarter	$47.33	$31.56	$0.3225
Fourth Quarter	$33.72	$22.09	$0.3225


Fourth Quarter 2009	Total Number of Shares Purchased(A)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Approximate Dollar Value of Shares that May Yet be Purchased Under the Plan(B)
					Millions

October 1-October 31	—	$	—	—	$	658
November 1-November 30	2,000	$	31.27	—	$	658
December 1-December 31	48,000	$	31.52	—	$	658


Plan Category	Number of Securities to be Issued Upon Exercise of Outstanding Options Warrants and Rights	Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights		Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans

Equity compensation plans approved by security holders	4,122,050	$	32.10	18,546,808
Equity compensation plans not approved by security holders	20,000	$	22.93	3,709,649	(A)

Total	4,142,050	$	32.06	22,256,457


PSEG
	2009		2008		2007		2006		2005
For the Years Ended December 31:		Millions, where applicable
Operating Revenues	$	12,406	$	13,322	$	12,677	$	11,735	$	11,809
Income from Continuing Operations(A)	$	1,592	$	983	$	1,325	$	673	$	842
Net Income	$	1,592	$	1,188	$	1,335	$	739	$	661
Earnings per Share:
Income from Continuing Operations:
Basic(A)	$	3.15	$	1.94	$	2.61	$	1.34	$	1.75
Diluted(A)	$	3.14	$	1.93	$	2.60	$	1.33	$	1.72
Net Income:
Basic	$	3.15	$	2.34	$	2.63	$	1.47	$	1.38
Diluted	$	3.14	$	2.34	$	2.62	$	1.46	$	1.35
Dividends Declared per Share	$	1.33	$	1.29	$	1.17	$	1.14	$	1.12
As of December 31:
Total Assets	$	28,730	$	29,049	$	28,299	$	28,508	$	29,625
Long-Term Obligations(B)	$	7,679	$	8,044	$	8,709	$	10,147	$	11,035


Earnings (Losses) In Millions	Years Ended December 31,	2009		2008			2007

Power		$	1,189	$	1,115		$	1,000
PSE&G			325		364			380
Energy Holdings(A)			72		(468	)		12
Other(B)			6		(28	)		(67	)

PSEG Income from Continuing Operations			1,592		983			1,325
Income from Discontinued Operations, Including Gain on Disposal(C)			—		205			10

PSEG Net Income		$	1,592	$	1,188		$	1,335


Earnings Per Share (Diluted)	Years Ended December 31,	2009		2008		2007

PSEG Income from Continuing Operations		$	3.14	$	1.93	$	2.60
Income from Discontinued Operations, Including Gain on Disposal(C)			—		0.41		0.02

PSEG Net Income		$	3.14	$	2.34	$	2.62


	In Millions, after tax
	2009			2008			2007
NDT Fund Activity	$	9		$	(71	)	$	12
Non-Trading Mark-to-Market Gains (Losses)	$	(25	)	$	16		$	10


	For the Years Ended December 31,								Increase / (Decrease) 2009 vs 2008					Increase / (Decrease) 2008 vs 2007
	2009			2008			2007		Increase / (Decrease) 2009 vs 2008					Increase / (Decrease) 2008 vs 2007
		Millions								Millions		%			Millions		%

Operating Revenues	$	12,406		$	13,322		$	12,677	$	(916	)	(7	)	$	645		5
Energy Costs		5,711			7,295			6,512		(1,584	)	(22	)		783		12
Operation and Maintenance		2,603			2,486			2,406		117		5			80		3
Depreciation and Amortization		838			792			774		46		6			18		2
Income from Equity Method Investments		39			37			115		2		5			(78	)	(68	)
Gain (Loss) on Disposal of and (Impairment) on Equity Method Investments		(22	)		(27	)		137		5		(19	)		(164	)	N/A
Other Income and Deductions		86			100			91		(14	)	(14	)		9		10
Other-Than-Temporary Impairments		61			220			73		(159	)	(72	)		147		201
Interest Expense		527			594			727		(67	)	(11	)		(133	)	(18	)
Income Tax Expense		1,044			926			1,064		118		13			(138	)	(13	)
Income from Discontinued Operations, including Gain on Disposal, net of tax		—			205			10		(205	)	(100	)		195		N/A


	For the Years Ended December 31,							Increase / (Decrease) 2009 vs 2008		Increase / (Decrease) 2008 vs 2007
	2009		2008		2007			Increase / (Decrease) 2009 vs 2008		Increase / (Decrease) 2008 vs 2007
		Millions

Income from Continuing Operations	$	1,189	$	1,115	$	1,000		$	74	$	115
Loss from Discontinued Operations, net of tax		—		—		(8	)		—		(8	)
Net Income	$	1,189	$	1,115	$	992		$	74	$	107


	For the Years Ended December 31,							Increase / (Decrease) 2009 vs 2008					Increase / (Decrease) 2008 vs 2007
Power	2009		2008		2007			Increase / (Decrease) 2009 vs 2008					Increase / (Decrease) 2008 vs 2007
		Millions							Millions		%			Millions		%

Operating Revenues	$	7,143	$	8,483	$	7,422		$	(1,340	)	(16	)	$	1,061		14
Energy Costs		3,740		5,051		4,414			(1,311	)	(26	)		637		14
Operation and Maintenance		1,114		1,126		1,061		$	(12	)	(1	)	$	65		6
Depreciation and Amortization		203		181		158			22		12			23		15
Other Income and (Deductions)		99		100		145		$	(1	)	(1	)	$	(45	)	(31	)
Other-Than -Temporary Impairments		60		219		73			(159	)	(73	)		146		200
Interest Expense		167		192		185		$	(25	)	(13	)	$	7		4
Income Tax Expense		769		699		676			70		10			23		3
Loss from Discontinued Operations, net of tax		—		—		(8	)	$	—		N/A		$	8		100


	For the Years Ended December 31,						Increase / (Decrease) 2009 vs 2008			Increase / (Decrease) 2008 vs 2007
	2009		2008		2007		Increase / (Decrease) 2009 vs 2008			Increase / (Decrease) 2008 vs 2007
		Millions

Income from Continuing Operations	$	325	$	364	$	380	$	(39	)	$	(16	)
Net Income	$	325	$	364	$	380	$	(39	)	$	(16	)


	For the Years Ended December 31,						Increase / (Decrease) 2009 vs 2008					Increase / (Decrease) 2008 vs 2007
PSE&G	2009		2008		2007		Increase / (Decrease) 2009 vs 2008					Increase / (Decrease) 2008 vs 2007
		Millions						Millions		%			Millions		%

Operating Revenues	$	8,243	$	9,038	$	8,493	$	(795	)	(9	)	$	545		6
Energy Costs		5,170		6,072		5,498		(902	)	(15	)		574		10
Operation and Maintenance		1,474		1,338		1,308		136		10			30		2
Depreciation and Amortization		608		583		591		25		4			(8	)	(1	)
Other Income and (Deductions)		5		8		12		(3	)	(38	)		(4	)	(33	)
Interest Expense		312		325		332		(13	)	(4	)		(7	)	(2	)
Income Tax Expense		226		228		257		(2	)	(1	)		(29	)	(11	)


	For the Years Ended December 31,							Increase / (Decrease) 2009 vs 2008			Increase / (Decrease) 2008 vs 2007
	2009		2008			2007		Increase / (Decrease) 2009 vs 2008			Increase / (Decrease) 2008 vs 2007
		Millions

Income (Loss) from Continuing Operations	$	72	$	(468	)	$	12	$	540		$	(480	)
Income from Discontinued Operations, including Gain on Disposal, net of tax		—		205			18		(205	)		187
Net Income (Loss)	$	72	$	(263	)	$	30	$	335		$	(293	)


	For the Years Ended									Increase / (Decrease)					Increase / (Decrease)
Energy Holdings	2009			2008			2007			2009 vs 2008					2008 vs 2007
					Millions						Millions		%			Millions		%

Operating Revenues	$	221		$	(368	)	$	167		$	589		N/A		$	(535	)	N/A
Operation and Maintenance		47			57			66			(10	)	(18	)		(9	)	(14	)
Depreciation and Amortization		11			11			12			—		—			(1	)	(8	)
Income from Equity Method Investments		39			36			115			3		8			(79	)	(69	)
Gain (Loss) on Disposal of and (Impairment) on Equity Method Investments		(22	)		(27	)		137			(5	)	(19	)		(164	)	N/A
Other Income and (Deductions)		(27	)		25			(28	)		(52	)	N/A			53		N/A
Interest Expense		37			57			125			(20	)	(35	)		(68	)	(54	)
Income Tax Expense		45			9			176			36		N/A			(167	)	N/A
Income from Discontinued Operations, including Gain (Loss) on Disposal, net of tax	$	—		$	205		$	18		$	(205	)	(100	)	$	187		N/A


			As of December 31, 2009
Company/Facility	Total Facility		Usage(A)		Liquidity Available
		Millions
PSEG	$	1,000	$	523	$	477
Power		2,050		159		1,891
PSE&G		600		—		600

Total	$	3,650	$	682	$	2,968


	Moody’s(A)	S&P(B)	Fitch(C)
PSEG:
Outlook	Stable	Stable	Stable
Commercial Paper	P2	A2	F2
Power:
Outlook	Stable	Stable	Stable
Senior Notes	Baa1	BBB	BBB+
PSE&G:
Outlook	Stable	Stable	Stable
Mortgage Bonds	A2	A–	A
Commercial Paper	P2	A2	F2


	2010		2011		2012
	Millions
Power:
Hudson Environmental	$	280	$	5	$	—
Mercer Environmental		55		5		—
Other Environmental		35		25		35
Exploration of New Nuclear Plant		10		15		30
Growth Opportunities		130		245		95
Other		240		255		320

Total Power	$	750	$	550	$	480

PSE&G:
Transmission
Reliability Enhancements	$	390	$	635	$	780
Facility Replacement		130		95		115
Support		5		10		5
Distribution
Support Facilities		85		65		60
New Business		145		145		140
Reliability Enhancements		255		140		140
Facility Replacement		470		195		170
Environmental/Regulatory		75		45		45
Renewables / EMP		385		350		190

Total PSE&G	$	1,940	$	1,680	$	1,645

Non-Utility Renewables		120		190		225
Other		30		20		40

Total PSEG	$	2,840	$	2,440	$	2,390


	Total Amount Committed			Less Than 1 year			2 - 3 years		4 - 5 years		Over 5 years
		Millions
Contractual Cash Obligations
Short-Term Debt Maturities
PSEG	$	530		$	530		$	—	$	—	$	—
Long-Term Recourse Debt Maturities
PSEG		—			—			—		—		—
Power		3,126			—			1,466		459		1,201
PSE&G		3,577			300			300		975		2,002
Transition Funding (PSE&G)		1,276			186			400		439		251
Transition Funding II (PSE&G)		67			12			23		24		8
Energy Holdings		127			—			127		—		—
Long-Term Non-Recourse Project Financing
Energy Holdings		42			23			7		4		8
Interest on Recourse Debt
PSEG		—			—			—		—		—
Power		1,580			214			313		198		855
PSE&G		2,612			187			374		298		1,753
Transition Funding (PSE&G)		286			81			125		69		11
Transition Funding II (PSE&G)		9			3			4		2		—
Energy Holdings		16			11			5		—		—
Interest on Non-Recourse Project Financing
Energy Holdings		7			3			2		1		1
Capital Lease Obligations
PSEG		42			7			15		14		6
Power		9			1			3		4		1
Operating Leases
PSE&G		16			5			7		3		1
Energy Holdings		1			1			—		—		—
Energy-Related Purchase Commitments
Power		3,250			873			1,131		692		554

Total Contractual Cash Obligations	$	16,043		$	1,907		$	4,302	$	3,182	$	6,652

Commercial Commitments
Standby Letters of Credit
Power	$	174		$	174		$	—	$	—	$	—
Energy Holdings		3			3			—		—		—
Guarantees and Equity Commitments
Energy Holdings		61			28			33		—		—

Total Commercial Commitments	$	238		$	205		$	33	$	—	$	—

Liability Payments for Uncertain Tax Positions
PSEG	$	21		$	21		$	—	$	—	$	—
Power		(3	)		(3	)		—		—		—
PSE&G		(30	)		(30	)		—		—		—
Energy Holdings		132			132			—		—		—


Assumption	2009	2008	2007

Discount Rate	5.91%	6.80%	6.50%
Rate of Return on Plan Assets	8.75%	8.75%	8.75%


Assumption	Change	As of 12/31/2009 Impact on Pension Benefit Obligation		Increase to Pension Expense in 2010
	Millions
Discount Rate	-1%	$	515	$	49
Rate of Return on Plan Assets	-1%	$	—	$	31


For the Year Ended December 31, 2009	Trading VaR			Non-Trading MTM VaR
		Millions
95% Confidence level, Loss could exceed VaR one day in 20 days:
Period End	$	1		$	19
Average for the Period	$	1		$	34
High	$	3		$	49
Low		—	*	$	19
99.5% Confidence level, Loss could exceed VaR one day in 200 days:
Period End	$	1		$	30
Average for the Period	$	1		$	53
High	$	5		$	77
Low		—	*	$	30


	IDC/AFUDC Capitalized
	2009			2008			2007
	Millions		Avg Rate	Millions		Avg Rate	Millions		Avg Rate

Power	$	58	6.78%	$	44	6.63%	$	33	6.81%
PSE&G	$	1	0.88%	$	4	3.46%	$	3	5.44%


	As of December 31,
	2009		2008
		Millions

Regulatory Assets	$	1,367	$	1,546
Long-Term Debt, including Current Portion	$	1,343	$	1,530
Maximum Exposure to Loss*	$	16	$	15


	As of December 31,
	2009		2008
	Millions

Property, Plant and Equipment	$	13	$	9
Other Assets	$	17	$	1
Notes Payable	$	4	$	2
Other Liabilities	$	7	$	—
Maximum Exposure to Loss*	$	21	$	6


	Year Ended December 31,
	2007
	Millions

Operating Revenues	$	—
Loss Before Income Taxes	$	(13	)
Net Loss	$	(8	)


	Years Ended December 31,
	2008		2007
	Millions

Operating Revenues	$	40	$	22
Income (Loss) Before Income Taxes	$	5	$	(10	)
Net Income (Loss)	$	3	$	(6	)


	Years Ended December 31,
	2008		2007
	Millions

Operating Revenues	$	379	$	442
Income Before Income Taxes	$	36	$	55
Net Income (Loss)	$	30	$	(34	)


	Year Ended December 31,
	2007
	Millions

Operating Revenues	$	41
Income Before Income Taxes	$	15
Net Income	$	10


	Power		PSE&G		Other		PSEG Consolidated
	Millions

December 31, 2009
Generation:
Fossil Production	$	5,910	$	—	$	—	$	5,910
Nuclear Production		833		—		—		833
Nuclear Fuel in Service		631		—		—		631
Other Production-Solar		—		13		13		26
Construction Work in Progress		1,124		—		—		1,124

Total Generation		8,498		13		13		8,524

Transmission and Distribution:
Electric Transmission		—		1,891		—		1,891
Electric Distribution		—		5,804		—		5,804
Gas Transmission		—		95		—		95
Gas Distribution		—		4,422		—		4,422
Construction Work in Progress		—		108		—		108
Plant Held for Future Use		—		7		—		7
Other		—		421		—		421

Total Transmission and Distribution		—		12,748		—		12,748

Other		81		172		544		797

Total	$	8,579	$	12,933	$	557	$	22,069


	Power		PSE&G		Other		PSEG Consolidated
	Millions
December 31, 2008
Generation:
Fossil Production	$	5,701	$	—	$	—	$	5,701
Nuclear Production		988		—		—		988
Nuclear Fuel in Service		549		—		—		549
Construction Work in Progress		776		—		—		776

Total Generation		8,014		—		—		8,014

Transmission and Distribution:
Electric Transmission		—		1,655		—		1,655
Electric Distribution		—		5,567		—		5,567
Gas Transmission		—		88		—		88
Gas Distribution		—		4,228		—		4,228
Construction Work in Progress		—		176		—		176
Plant Held for Future Use		—		9		—		9
Other		—		471		—		471

Total Transmission and Distribution		—		12,194		—		12,194

Other		69		64		477		610

Total	$	8,083	$	12,258	$	477	$	20,818


December 31, 2009	Ownership Interest		Plant		Accumulated Depreciation
			Millions
Power:
Coal Generating
Conemaugh	22.50	%	$	242	$	117
Keystone	22.84	%	$	373	$	96
Nuclear Generating
Peach Bottom	50.00	%	$	300	$	135
Salem	57.41	%	$	720	$	183
Nuclear Support Facilities	Various		$	105	$	18
Pumped Storage Facilities
Yards Creek	50.00	%	$	31	$	22
Merrill Creek Reservoir	13.91	%	$	1	$	—

PSE&G:
Transmission Facilities	Various		$	146	$	60
Linden SNG Plant	90.00	%	$	5	$	5


December 31, 2008	Ownership Interest		Plant		Accumulated Depreciation
			Millions
Power:
Coal Generating
Conemaugh	22.50	%	$	228	$	113
Keystone	22.84	%	$	306	$	90
Nuclear Generating
Peach Bottom	50.00	%	$	261	$	128
Salem	57.41	%	$	732	$	202
Nuclear Support Facilities	Various		$	132	$	24
Pumped Storage Facilities
Yards Creek	50.00	%	$	29	$	22
Merrill Creek Reservoir	13.91	%	$	1	$	—

PSE&G:
Transmission Facilities	Various		$	142	$	58
Linden SNG Plant	90.00	%	$	5	$	5


	As of December 31,
	2009		2008		Recovery/Refund Period
		Millions
Regulatory Assets
Stranded Costs To Be Recovered	$	2,176	$	2,479	Through December 2015(1)(2)
Manufactured Gas Plant (MGP) Remediation Costs		694		709	Various(2)
Pension and Other Postretirement		1,053		988	Various
Deferred Income Taxes		409		421	Various
Societal Benefits Charges (SBC)		188		209	Various(2)
New Jersey Clean Energy Program		566		674	To be determined(2)
Gas Contract Mark-to-Market		112		384	Various(1)
OPEB Costs		58		77	Through December 2012(2)
Unamortized Loss on Reacquired Debt and Debt Expense		106		112	Over remaining debt life(1)
Conditional Asset Retirement Obligation		64		92	Various
Repair Allowance Taxes		37		45	Through August 2013(1)(2)
Uncertain Tax Positions		55		39	Various
Regulatory Restructuring Costs		18		23	Through August 2013(1)(2)
Gas Margin Adjustment Clause		45		34	To be determined(2)
Customer Care System		38		14	To be determined
Plant and Regulatory Study Costs		11		13	Through December 2021(2)
Incurred But Not Reported Claim Reserve		16		12	Various
Asbestos Abatement		8		8	Through 2020(2)
Non-Utility Generation Charge (NGC)		86		—	To be determined
Other		29		19	Various

Total Regulatory Assets	$	5,769	$	6,352


	As of December 31,
	2009		2008		Recovery/Refund Period
		Millions
Regulatory Liabilities
Cost of Removal	$	265	$	269	Various
Overrecovered Gas Costs		45		7	Through September 2010(1)(2)
Excess Cost of Removal		24		38	Through November 2011(1)(2)
Overrecovered Electric Costs		41		14	To be determined(1)(2)
NGC		—		9	To be determined(2)
Renewables & Energy Efficiency		9		—	Various(1)(2)
Other		20		18	Various(1)

Total Regulatory Liabilities	$	404	$	355


	As of December 31,
	2009		2008
Power		Millions
Partnerships and Corporate Joint Ventures	$	36	$	23
Other Investments		—		12
PSE&G
Life Insurance and Supplemental Benefits	$	156	$	151
Other Investments		48		7
Energy Holdings
Leveraged Leases	$	1,609	$	2,279
Partnerships and Corporate Joint Ventures		183		202
Other Investments		—		21

Total Long-Term Investments	$	2,032	$	2,695


	As of December 31,
	2009			2008
	Millions
Lease rents receivable (net of non-recourse debt)	$	1,587		$	2,749
Estimated residual value of leased assets		934			971

		2,521			3,720
Unearned and deferred income		(912	)		(1,441	)

Total investments in leveraged leases		1,609			2,279
Deferred tax liabilities		(1,313	)		(1,994	)

Net investment in leveraged leases	$	296		$	285


	Years Ended December 31,
	2009		2008			2007
	Millions

Pre-tax income (loss) of leveraged leases	$	23	$	(408	)	$	114
Income tax expense (benefit) on pre-tax income of leveraged leases	$	23	$	(98	)	$	36
Amortization of investment tax credits of leveraged leases	$	—	$	—		$	(1	)


Name	Location	% Owned
Power
Keystone	PA	23%
Conemaugh	PA	23%

Energy Holdings
Kalaeloa	HI	50%
GWF	CA	50%
Hanford, L. P.	CA	50%
GWF Energy	CA	50%
Bridgewater	NH	40%
Turboven	Venezuela	50%


	As of December 31, 2009
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
		Millions
Equity Securities	$	475	$	180	$	(5	)	$	650

Debt Securities
Government Obligations		296		4		(3	)		297
Other Debt Securities		209		10		(3	)		216

Total Debt Securities		505		14		(6	)		513

Other Securities		37		—		(1	)		36

Total Available-for-Sale Securities	$	1,017	$	194	$	(12	)	$	1,199


	As of December 31, 2008
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
		Millions
Equity Securities	$	386	$	32	$	(5	)	$	413

Debt Securities
Government Obligations		192		3		—			195
Other Debt Securities		284		6		—			290

Total Debt Securities		476		9		—			485

Other Securities		72		1		(1	)		72

Total Available-for-Sale Securities	$	934	$	42	$	(6	)	$	970


	As of December 31, 2009 Less Than 12 Months					As of December 31, 2009 Greater Than 12 Months					As of December 31, 2008 Less Than 12 Months*
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
	Millions
Equity Securities(A)	$	61	$	(5	)	$	—	$	—		$	85	$	(5	)

Debt Securities
Government Obligations(B)		78		(2	)		15		(1	)		—		—
Other Debt Securities(C)		59		(3	)		—		—			—		—

Total Debt Securities		137		(5	)		15		(1	)		—		—

Other Securities		1		(1	)		—		—			—		(1	)

Total Available-for-Sale Securities	$	199	$	(11	)	$	15	$	(1	)	$	85	$	(6	)


	Years Ended December 31,
	2009			2008			2007
	Millions

Proceeds from Sales	$	1,769		$	3,060		$	1,672
Net Realized Gains (Losses)
Gross Realized Gains	$	183		$	354		$	164
Gross Realized Losses	$	(135	)	$	(273	)	$	(88	)

Net Realized Gains	$	48		$	81		$	76


	As of December 31, 2009
	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	Millions
Equity Securities	$	10	$	3	$	—	$	13
Debt Securities		101		21		—		122
Other Securities		14		—		—		14

Total PSEG Available-for-Sale Securities	$	125	$	24	$	—	$	149


	As of December 31, 2008
	Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	Millions
Equity Securities	$	11	$	—	$	(2	)	$	9
Debt Securities		102		9		(1	)		110
Other Securities		14		—		—			14

Total PSEG Available-for-Sale Securities	$	127	$	9	$	(3	)	$	133


	2009			2008			2007
	Millions

Proceeds from Sales	$	2		$	23		$	33

Net Realized Losses:
Gross Realized Gains	$	—		$	2		$	1
Gross Realized Losses		(1	)		(2	)		(2	)

Net Realized Losses	$	(1	)	$	—		$	(1	)


	As of December 31, 2009		As of December 31, 2008
	Millions

Power	$	30	$	27
PSE&G		51		46
Other		68		60

Total PSEG Available-for-Sale Securities	$	149	$	133


	PSEG			Power			PSE&G			Other
	Millions

ARO Liability as of January 1, 2009	$	576		$	334		$	240		$	2
Liabilities Settled		(4	)		(1	)		(3	)		—
Liabilities Incurred		1			—			1			—
Accretion Expense		27			27			—			—
Accretion Expense Deferred and Recovered in Rate Base (A)		14			—			14			—
Revisions to Present Value of Estimated Cash Flows		(175	)		(134	)		(41	)		—

ARO Liability as of December 31, 2009	$	439		$	226		$	211		$	2


	Pension Benefits						Other Benefits
	2009			2008			2009			2008
	Millions
Change in Benefit Obligation:
Benefit Obligation at Beginning of Year	$	3,569		$	3,601		$	1,104		$	1,166
Service Cost		76			78			13			15
Interest Cost		235			227			73			72
Actuarial (Gain) Loss		381			(122	)		129			(91	)
Gross Benefits Paid		(216	)		(215	)		(69	)		(64	)
Medicare Subsidy Receipts		—			—			5			6
Plan Amendments		(28	)		—			—

Benefit Obligation at End of Year	$	4,017		$	3,569		$	1,255		$	1,104

Change in Plan Assets:
Fair Value of Assets at Beginning of Year	$	2,364		$	3,390		$	129		$	163
Actual Return on Plan Assets		393			(883	)		20			(45	)
Employer Contributions		373			72			75			69
Gross Benefits Paid		(216	)		(215	)		(69	)		(64	)
Medicare Subsidy Receipts		—			—			5			6

Fair Value of Assets at End of Year	$	2,914		$	2,364		$	160		$	129

Funded Status:
Funded Status (Plan Assets less Benefit Obligation)	$	(1,103	)	$	(1,205	)	$	(1,095	)	$	(975	)

Additional Amounts Recognized in the Consolidated Balance Sheets:
Current Accrued Benefit Cost	$	(9	)	$	(9	)	$	—		$	—
Noncurrent Accrued Benefit Cost		(1,094	)		(1,196	)		(1,095	)		(975	)

Amounts Recognized	$	(1,103	)	$	(1,205	)	$	(1,095	)	$	(975	)


Additional Amounts Recognized in Accumulated Other Comprehensive Loss, Regulated Assets and Deferred Assets:
Net Transition Obligation	$	—		$	—		$	57		$	85
Prior Service Cost		(3	)		32			83			96
Net Actuarial Loss		1,617			1,527			172			48

Total	$	1,614		$	1,559		$	312		$	229


	Pension Benefits									Other Benefits
	2009			2008			2007			2009			2008			2007
	Millions

Components of Net Periodic Benefit Costs:
Service Cost	$	76		$	78		$	83		$	13		$	15		$	16
Interest Cost		235			227			217			73			72			73
Expected Return on Plan Assets		(215	)		(290	)		(289	)		(12	)		(15	)		(14	)
Amortization of Net
Transition Obligation		—			—			—			27			27			28
Prior Service Cost		7			9			10			13			13			13
Actuarial Loss		113			13			22			(2	)		(1	)		7

Net Periodic Benefit Cost	$	216		$	37		$	43		$	112		$	111		$	123
Effect of Regulatory Asset		—			—			—			19			19			19

Total Benefit Costs, Including Effect of Regulatory Asset	$	216		$	37		$	43		$	131		$	130		$	142


	Pension Benefits Years Ended December 31,						Other Benefits Years Ended December 31,
	2009		2008		2007		2009		2008		2007
	Millions

Power	$	65	$	10	$	12	$	11	$	13	$	16
PSE&G		120		16		19		116		113		121
Other		31		11		12		4		4		5

Total Benefit Costs	$	216	$	37	$	43	$	131	$	130	$	142


	Pension						OPEB
	2009			2008			2009			2008
	Millions

Net Actuarial (Gain) Loss in Current Period	$	203		$	1,051		$	120		$	(31	)
Amortization of Net Actuarial Gain (Loss)		(113	)		(13	)		3			1
Prior Service Credit in Current Period		(28	)		—			—			—
Amortization of Prior Service Credit		(7	)		(9	)		(13	)		(13	)
Amortization of Transition Asset		—			—			(27	)		(27	)

Total	$	55		$	1,029		$	83		$	(70	)


	Pension Benefits 2010		Other Benefits 2010
	Millions

Actuarial Loss	$	122	$	8
Prior Service Cost	$	—	$	13
Transition Obligation	$	—	$	27


	Pension Benefits			Other Benefits
	2009	2008	2007	2009			2008			2007
Weighted-Average Assumptions Used to Determine Benefit Obligations as of December 31:
Discount Rate	5.91%	6.80%	6.50%		5.90%			6.80%			6.50%
Rate of Compensation Increase	4.61%	4.61%	4.69%		4.61%			4.61%			4.69%

Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost for Years Ended December 31:
Discount Rate	6.80%	6.50%	6.00%		6.80%			6.50%			6.00%
Expected Return on Plan Assets	8.75%	8.75%	8.75%		8.75%			8.75%			8.75%
Rate of Compensation Increase	4.61%	4.69%	4.69%		4.61%			4.69%			4.69%

Assumed Health Care Cost Trend Rates as of December 31:
Administrative Expense					5.00%			5.00%			5.00%
Dental Costs					6.00%			6.00%			6.00%
Pre-65 Medical Costs
Immediate Rate					8.50%			8.50%			8.50%
Ultimate Rate					5.00%			5.00%			5.00%
Year Ultimate Rate Reached					2015			2013			2012
Post-65 Medical Costs
Immediate Rate					9.50%			9.50%			9.50%
Ultimate Rate					5.00%			5.00%			5.00%
Year Ultimate Rate Reached					2016			2014			2013

Effect of a 1% Increase in the Assumed Rate of Increase in Health Care Benefit Costs:
					Millions
Total of Service Cost and Interest Cost				$	11		$	10		$	11
Postretirement Benefit Obligation				$	137		$	111		$	121

Effect of a 1% Decrease in the Assumed Rate of Increase in Health Care Benefit Costs:
Total of Service Cost and Interest Cost				$	(9	)	$	(8	)	$	(9	)
Postretirement Benefit Obligation				$	(115	)	$	(93	)	$	(101	)


Description	Recurring Fair Value Measurements as of December 31, 2009
Description	Total		Quoted Market Prices for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
		Millions
Cash Equivalents(A)	$	116	$	—	$	63	$	53
Common Stocks(B)
Commingled—US		1,285		1,285		—		—
Commingled—International		474		474		—		—
Other		251		251		—		—
Bonds(C)
Commingled—US		17		—		—		17
Commingled—International		11		—		—		11
Government (US & Foreign)		312		—		312		—
Other		469		—		469		—
Pooled Real Estate(D)		102		—		—		102
Private Equity(E)		37		—		—		37

	$	3,074	$	2,010	$	844	$	220


	Balance as of January 1, 2009		Purchases/ (Sales)			Actual Return on Asset Sales		Actual Return on Assets Still Held			Balance as of December 31, 2009
		Millions
Cash Equivalents	$	25	$	28		$	—	$	—		$	53
Commingled Bonds—US	$	348	$	(352	)	$	29	$	(8	)	$	17
Commingled Bonds—International	$	10	$	2		$	—	$	(1	)	$	11
Pooled Real Estate	$	171	$	4		$	—	$	(73	)	$	102
Private Equity	$	40	$	(2	)	$	1	$	(2	)	$	37


	As of December 31,
Investments	2009	2008
Equity Securities	66%	47%
Fixed Income Securities	26%	43%
Real Estate Assets	3%	8%
Other Investments	5%	2%

Total Percentage	100%	100%


			Other Benefits
Year	Pension Benefits		Gross OPEB		Medicare Subsidy			Net OPEB
		Millions
2010	$	227	$	76	$	(5	)	$	71
2011		235		80		(6	)		74
2012		242		83		(7	)		76
2013		250		84		(7	)		77
2014		259		87		(8	)		79
2015-2019		1,463		463		(47	)		416

Total	$	2,676	$	873	$	(80	)	$	793


	Thrift Plan and Savings Plan Years Ended December 31,
	2009		2008		2007
		Millions
Power	$	10	$	9	$	9
PSE&G		17		17		15
Other		5		5		4

Total Employer Matching Contributions	$	32	$	31	$	28


	As of December 31,
	2009			2008
		Millions
Face value of outstanding guarantees	$	1,783		$	1,856
Exposure under current guarantees	$	403		$	585
Letters of Credit Margin Posted	$	122		$	201
Letters of Credit Margin Received	$	123		$	250
Cash Deposited and Received
Counterparty Cash Margin Deposited	$	—		$	3
Counterparty Cash Margin Received		(90	)		(81	)
Net Broker Balance Received		(31	)		(74	)


	Auction Year
	2007	2008	2009	2010
36-Month Terms Ending	May 2010	May 2011	May 2012	May 2013	(a)
Load (MW)	2,758	2,800	2,900	2,800
$ per kWh	0.09888	0.11150	0.10372	0.09577


Fuel Type	Commitments through 2014		Power’s Share
		Millions
Nuclear Fuel
Uranium	$	725	$	441
Enrichment	$	488	$	309
Fabrication	$	215	$	138
Natural Gas	$	950	$	950
Coal/Oil	$	858	$	858


	Total Site Coverage			Retrospective Assessments
	Millions
Type and Source of Coverages Public and Nuclear Worker Liability (Primary Layer):
ANI	$	375	(A)	$	—
Nuclear Liability (Excess Layer):
Price-Anderson Act		12,219	(B)		370

Nuclear Liability Total	$	12,594	(C)	$	370

Property Damage (Primary Layer):
NEIL
Primary (Salem/Hope Creek/Peach Bottom).	$	500		$	17
Property Damage (Excess Layers):
NEIL II (Salem/Hope Creek/Peach Bottom)		750			8
NEIL Blanket Excess (Salem/Hope Creek/Peach Bottom)		850	(D)		5

Property Damage Total (Per Site)	$	2,100		$	30


Accidental Outage:
NEIL I (Peach Bottom)	$	245	(E)	$	6
NEIL I (Salem)		281	(E)		7
NEIL I (Hope Creek)		490	(E)		6

Replacement Power Total	$	1,016		$	19


	Power			Other
	Millions

2010	$	1		$	7
2011		1			7
2012		2			8
2013		2			7
2014		2			7
Thereafter		1			6

Total Minimum Lease Payments		9			42
Less: Imputed Interest		(1	)		(12	)

Present Value of Net Minimum Lease Payments	$	8		$	30


		As of December 31,
	Maturity	2009			2008
		Millions
PSEG (Parent)
Senior Note—6.89%	2009	$	—		$	49
Senior Note—4.66%	2009		—			200

Principal Amount Outstanding			—			249

Fair Value of Swaps(A)			(3	)		—
Unamortized Discount Related to Debt Exchange(B)			(35	)		—
Amounts Due Within One Year			—			(249	)

Total Long-Term Debt of PSEG (Parent)		$	(38	)	$	—


		As of December 31,
	Maturity	2009			2008
Power		Millions
Senior Notes:
3.75%	2009	$	—		$	250
7.75%	2011		800			800
6.95%	2012		600			600
5.00%	2014		250			250
5.50%	2015		300			300
5.32%	2016		303			—
8.63%	2031		500			500

Total Senior Notes			2,753			2,700
Pollution Control Notes:
5.00%	2012		66			66
5.50%	2020		14			14
5.85%	2027		19			19
5.75%	2031		25			25
5.75%	2037		40			40
4.00%	2042		—			44

Total Pollution Control Notes			164			208
Medium Term Notes (MTNs):
6.00%	2013		48			—
6.50%	2014		161			—

Total MTNs			209			—

Nonrecourse Project Debt - Texas - Floating Rate(C)(D)	2009		—			280

Principal Amount Outstanding			3,126			3,188
Amounts Due Within One Year			—			(530	)
Net Unamortized Discount			(5	)		(5	)

Total Long-Term Debt of Power		$	3,121		$	2,653


		As of December 31,
PSE&G	Maturity	2009		2008
First and Refunding Mortgage Bonds(E):		Millions
Libor + .875%	2010	300		300
6.75%	2016	171		171
9.25%	2021	134		134
8.00%	2037	7		7
5.00%	2037	8		8

Total First and Refunding Mortgage Bonds		620		620
Pollution Control Bonds(E):
6.45%	2019	—		5
5.20%	2025	23		23
Floating Rate(F)	2028 - 2033	—		100
5.45%	2032	50		50
6.40%	2032	100		100

Total Pollution Control Bonds		173		278
Medium-Term Notes(E):
8.16%	2009	—		16
8.10%	2009	—		44
5.13%	2012	300		300
5.00%	2013	150		150
5.38%	2013	300		300
6.33%	2013	275		275
5.00%	2014	250		250
5.30%	2018	400		400
7.04%	2020	9		9
7.18%	2023	—		5
7.15%	2023	—		34
5.25%	2035	250		250
5.70%	2036	250		250
5.80%	2037	350		350
5.38%	2039	250		—

Total MTNs		2,784		2,633

Principal Amount Outstanding		3,577		3,531
Amounts Due Within One Year		(300	)	(60	)
Net Unamortized Discount		(6	)	(8	)

Total Long-Term Debt of PSE&G (excluding Transition Funding and Transition Funding II)		3,271		3,463


		As of December 31,
	Maturity	2009			2008
		Millions
Transition Funding (PSE&G)
Securitization Bonds:
Swap to 5.66%	2009		—			82
6.45%	2011		232			328
6.61%	2013		454			454
6.75%	2014		220			220
6.89%	2015		370			370

Principal Amount Outstanding			1,276			1,454
Amounts Due Within One Year			(186	)		(178	)

Total Securitization Debt of Transition Funding			1,090			1,276

Transition Funding II (PSE&G)
Securitization Bonds:
4.34%	2009 - 2012		24			33
4.49%	2013		20			20
4.57%	2015		23			23

Principal Amount Outstanding			67			76
Amounts Due Within One Year			(12	)		(10	)

Total Securitization Debt of Transition Funding II			55			66

Total Long-Term Debt of PSE&G		$	4,416		$	4,805


		As of December 31,
Energy Holdings	Maturity	2009			2008
		Millions
8.50% Senior Notes	2011	$	127		$	505

Non-Recourse Project Debt(D):
Resources—4.75% to 8.75%	2009 - 2016		30			33
EGDC—8.27%	2009 - 2013		12			15

Principal Amount Outstanding			42			48
Amounts Due Within One Year			(23	)		(6	)

Total Non-Recourse Project Debt			19			42

Total Long-Term Debt of Energy Holdings		$	146		$	547


					PSE&G						Energy Holdings
Year	PSEG (Parent)		Power		PSE&G		Transition Funding		Transition Funding II		Senior Notes		Non-Recourse Debt		Total
	Millions
2010	$	—	$	—	$	300	$	186	$	12	$	—	$	23	$	521
2011		—		800		—		195		11		127		3		1,136
2012		—		666		300		205		12		—		4		1,187
2013		—		48		725		214		12		—		3		1,002
2014		—		411		250		225		12		—		1		899
Thereafter		—		1,201		2,002		251		8		—		8		3,470

	$	—	$	3,126	$	3,577	$	1,276	$	67	$	127	$	42	$	8,215


	As of December 31, 2009								Primary Purpose
Company/Facility	Total Facility		Usage			Available Liquidity		Expiration Date	Primary Purpose
Millions
PSEG:
									Commercial Paper (CP)
5-year Credit Facility(A)	$	1,000	$	523	(B)	$	477	Dec 2012	Support/Funding/Letters of Credit
Uncommitted Bilateral Agreement		N/A		26			N/A	N/A	Funding

Total PSEG	$	1,000	$	549		$	477

Power:
5-year Credit Facility(A)	$	1,600	$	117	(B)	$	1,483	Dec 2012	Funding/Letters of Credit
2-year Credit Facility		350		—			350	July 2011	Funding
Bilateral Credit Facility		100		42	(B)		58	March 2010	Funding/Letters of Credit

Total Power	$	2,050	$	159		$	1,891

PSE&G:
5-year Credit Facility(A)	$	600	$	—		$	600	June 2012	CP Support/Funding/Letters of Credit
Uncommitted Bilateral Agreement		N/A		—			N/A	N/A	Funding

Total PSE&G	$	600	$	—		$	600

Total	$	3,650				$	2,968


	December 31, 2009						December 31, 2008
	Carrying Amount			Fair Value*			Carrying Amount		Fair Value*
	Millions
Long-Term Debt:
PSEG (Parent)	$	(38	)	$	(3	)	$	249	$	250
Power—Recourse Debt		3,121			3,473			2,903		2,800
Power—Project Level, Non-Recourse Debt		—			—			280		280
PSE&G		3,571			3,807			3,523		3,569
Transition Funding (PSE&G)		1,276			1,449			1,454		1,658
Transition Funding II (PSE&G)		67			71			76		80
Energy Holdings:
Senior Notes		127			134			505		474
Project Level, Non-Recourse Debt		42			42			48		48

Total	$	8,166		$	8,973		$	9,038	$	9,159


	Outstanding Shares	Redemption Price Per Share		As of December 31,
				Book Value
				2009		2008
				Millions
PSEG Common Stock (no par value)(A)
Authorized 1,000,000,000 shares; (outstanding as of December 31, 2008, 506,017,898 shares)	505,989,630			$	4,200	$	4,175

PSE&G Cumulative Preferred Stock (B) without Mandatory Redemption (C) $100 par value series
4.08%	146,221	$	103.00	$	15	$	15
4.18%	116,958	$	103.00		12		12
4.30%	149,478	$	102.75		15		15
5.05%	104,002	$	103.00		10		10
5.28%	117,864	$	103.00		12		12
6.92%	160,711	$	101.73		16		16

Total Preferred Stock without Mandatory Redemption	795,234			$	80	$	80


	December 31,
	2009		2008
	Millions

Fair Value of Cash Flow Hedges	$	286	$	334
Impact on Accumulated Other Comprehensive Income (Loss) (after tax)	$	184	$	178


	As of December 31, 2009
	Power												PSE&G		Consolidated
	Cash Flow Hedges			Non Hedges			Netting (A)			Total Power			Non Hedges		Total Derivatives (B)
	Energy- Related Contracts			Energy- Related Contracts			Netting (A)			Total Power			Energy- Related Contracts		Total Derivatives (B)
Derivative Contracts
Current Assets	$	357		$	1,083		$	(1,209	)	$	231		$	1	$	243
Noncurrent Assets	$	321		$	255		$	(458	)	$	118		$	5	$	123

Total Mark-to-Market Derivative Assets	$	678		$	1,338		$	(1,667	)	$	349		$	6	$	366

Derivative Contracts
Current Liabilities	$	(219	)	$	(1,124	)	$	1,142		$	(201	)	$	—	$	(201	)
Noncurrent Liabilities	$	(173	)	$	(235	)	$	382		$	(26	)	$	—	$	(40	)

Total Mark-to-Market Derivative Assets (Liabilities)	$	(392	)	$	(1,359	)	$	1,524		$	(227	)	$	—	$	(241	)

Total Net Mark-to-Market Derivative Assets (Liabilities)	$	286		$	(21	)	$	(143	)	$	122		$	6	$	125

Other Noncurrent Assets	$	—		$	—		$	—		$	—		$	—	$	—


Derivatives in SFAS 133 Cash Flow Hedging Relationships	Amount of Pre-Tax Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)			Location of Pre-Tax Gain (Loss) Reclassified from AOCI into Income	Amount of Pre-Tax Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)	Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion)
		Millions
PSEG(A)
Energy-Related Contracts	$	657		Operating Revenue	$	690		Operating Revenue	$	(22	)
Interest Rate Swaps		—		Income from Equity Method Investments		(1	)			—
Energy-Related Contracts		(53	)	Energy Costs		(96	)			—
Interest Rate Swaps		(4	)	Interest Expense		(7	)			—

Total PSEG	$	600			$	586			$	(22	)

PSEG Power
Energy-Related Contracts	$	657		Operating Revenue	$	690		Operating Revenue	$	(22	)
Energy-Related Contracts		(53	)	Energy Costs		(96	)			—
Interest Rate Swaps		—		Interest Expense		(4	)			—

Total Power	$	604			$	590			$	(22	)

PSE&G
Interest Rate Swaps	$	(1	)	Interest Expense	$	(2	)		$	—

Total PSE&G	$	(1	)		$	(2	)		$	—

Energy Holdings
Interest Rate Swaps	$	—		Income from Equity Method Investments	$	(1	)		$	—

	$	—			$	(1	)		$	—


Accumulated Other Comprehensive Income	Pre-Tax			After-Tax
		Millions
Balance as of December 31, 2008	$	292		$	172
Gain Recognized in AOCI (Effective Portion)		601			356
Less: Gain Reclassified into Income (Effective Portion)		(588	)		(348	)

Balance as of December 31, 2009	$	305		$	180


	Location of Pre-Tax Gain (Loss) Recognized in Income on Derivatives	Amount of Pre-Tax Gain (Loss) Recognized in Income on Derivatives
Derivatives Not Designated as Hedges		Twelve Months Ended December 31, 2009
			Millions
PSEG and Power
Energy-Related Contracts	Operating Revenues	$	139
Energy-Related Contracts	Energy Costs		(164	)
Interest Rate Swaps	Interest Expense		(3	)
Derivatives in NDT Funds	Other Income		13

Total PSEG and Power		$	(15	)


Type	Notional	Total	PSEG	Power	PSE&G
	Millions
Natural Gas	Dth	842	—	613	229
Electricity	MWh	194	—	190	—
Capacity	MW days	1	—	1	—
FTRs	MWh	23	—	23	—
Emissions Allowances	Tons	1	—	1	—
Oil	Barrels	—	—	—	—
Renewable Energy Credits	MWh	1	—	1	—
Interest Rate Swaps	US Dollars	550	550	—	—


Rating	Current Exposure		Securities held as Collateral		Net Exposure		Number of Counterparties >10%	Net Exposure of Counterparties >10%
		Millions							Millions
Investment Grade—External Rating	$	1,340	$	111	$	1,280	2	$	773	(A)
Non-Investment Grade—External Rating		4		3		1	—		—
Investment Grade—No External Rating		29		—		29	—		—
Non-Investment Grade—No External Rating		12		22		8	—		—

Total	$	1,385	$	136	$	1,318	2	$	773


	Recurring Fair Value Measurements as of December 31, 2009
Description	Total			Cash Collateral Netting(E)			Quoted Market Prices of Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
	Millions
PSEG
Assets:
Derivative Contracts:
Energy-Related Contracts(A)	$	355		$	(223	)	$	—	$	415		$	163
Interest Rate Swaps(B)	$	11		$	—		$	—	$	11		$	—
NDT Funds(C)
Equity Securities	$	650		$	—		$	650	$	—		$	—
Debt Securities-Government Obligations	$	297		$	—		$	—	$	297		$	—
Debt Securities-Other	$	216		$	—		$	—	$	216		$	—
Other Securities	$	36		$	—		$	—	$	27		$	9
Rabbi Trusts(C)	$	149		$	—		$	14	$	121		$	14
Other Long-Term Investments(D)	$	2		$	—		$	2	$	—		$	—
Liabilities:
Derivative Contracts:
Energy-Related Contracts(A)	$	(227	)	$	80		$	—	$	(267	)	$	(40	)
Interest Rate Swaps(B)	$	(14	)	$	—		$	—	$	(14	)	$	—

Power
Assets:
Derivative Contracts:
Energy-Related Contracts(A)	$	349		$	(223	)	$	—	$	415		$	157
NDT Funds(C)
Equity Securities	$	650		$	—		$	650	$	—		$	—
Debt Securities-Government Obligations	$	297		$	—		$	—	$	297		$	—
Debt Securities-Other	$	216		$	—		$	—	$	216		$	—
Other Securities	$	36		$	—		$	—	$	27		$	9
Rabbi Trusts—Mutual Funds(C)	$	30		$	—		$	3	$	24		$	3
Liabilities:
Derivative Contracts:
Energy-Related Contracts(A)	$	(227	)	$	80		$	—	$	(267	)	$	(40	)

PSE&G
Assets:
Derivative Contracts:
Energy-Related Contracts(A)	$	6		$	—		$	—	$	—		$	6
Rabbi Trusts(C)	$	51		$	—		$	5	$	41		$	5


	Recurring Fair Value Measurements as of December 31, 2008
Description	Total			Cash Collateral Netting (E)			Quoted Market Prices of Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
		Millions
PSEG
Assets:
Derivative Contracts:
Energy-Related Contracts(A)	$	399		$	(154	)	$	—	$	439		$	114	*
NDT Funds(C)
Equity Securities	$	413		$	—		$	412	$	1		$	—
Debt Securities-Government Obligations	$	195		$	—		$	—	$	195		$	—
Debt Securities-Other	$	290		$	—		$	—	$	285		$	5
Other Securities	$	72		$	—		$	1	$	35		$	36
Rabbi Trusts(C)	$	133		$	—		$	9	$	110		$	14
Other Long-Term Investments(D)	$	1		$	—		$	1	$	—		$	—
Liabilities:
Derivative Contracts:
Energy-Related Contracts(A)	$	(510	)	$	42		$	—	$	(470	)	$	(82	)*
Interest Rate Swaps(B)	$	(10	)	$	—		$	—	$	(10	)	$	—

Power
Assets:
Derivative Contracts:
Energy-Related Contracts(A)	$	408		$	(154	)	$	—	$	450		$	112	*
NDT Funds(C)
Equity Securities	$	413		$	—		$	412	$	1		$	—
Debt Securities-Government Obligations	$	195		$	—		$	—	$	195		$	—
Debt Securities-Other	$	290		$	—		$	—	$	285		$	5
Other Securities	$	72		$	—		$	1	$	35		$	36
Rabbi Trusts—Mutual Funds(C)	$	27		$	—		$	2	$	22		$	3
Liabilities:
Derivative Contracts:
Energy-Related Contracts(A)	$	(454	)	$	42		$	—	$	(480	)	$	(16	)*
Interest Rate Swaps	$	(9	)	$	—		$	—	$	(9	)	$	—

PSE&G
Assets:
Derivative Contracts:
Energy-Related Contracts(A)	$	2		$	—		$	—	$	—		$	2
Rabbi Trusts(C)	$	46		$	—		$	3	$	38		$	5
Liabilities:
Derivative Contracts:
Energy-Related Contracts(A)	$	(66	)	$	—		$	—	$	—		$	(66	)
Interest Rate Swaps(B)	$	(1	)	$	—		$	—	$	(1	)	$	—


				Total Gains or (Losses) Realized/Unrealized
Description	Balance as of January 1, 2009			Included in Income(A)		Included in Regulatory Assets/ Liabilities(B)		Purchases, (Sales) and Settlements			Balance as of December 31, 2009
		Millions
PSEG
Net Derivative Assets	$	32		$	134	$	70	$	(113	)	$	123
NDT Funds	$	41		$	—	$	—	$	(32	)	$	9
Rabbi Trust Funds	$	14		$	—	$	—	$	—		$	14
Power
Net Derivative Assets	$	96		$	134	$	—	$	(113	)	$	117
NDT Funds	$	41		$	—	$	—	$	(32	)	$	9
Rabbi Trust Funds	$	3		$	—	$	—	$	—		$	3
PSE&G
Net Derivative Liabilities	$	(64	)	$	—	$	70	$	—		$	6
Rabbi Trust Funds	$	5		$	—	$	—	$	—		$	5


				Total Gains or (Losses) Realized/Unrealized
Description	Balance as of January 1, 2008			Included in Income(C)			Included in Regulatory Assets/ Liabilities(B)			Purchases, (Sales) and Settlements			Balance as of December 31, 2008
		Millions
PSEG
Net Derivative Assets	$	(9	)	$	209		$	(15	)	$	(153	)	$	32
NDT Funds	$	27		$	(4	)	$	—		$	18		$	41
Rabbi Trust Funds	$	16		$	—		$	—		$	(2	)	$	14
Power
Net Derivative Assets	$	40		$	209		$	—		$	(153	)	$	96
NDT Funds	$	27		$	(4	)	$	—		$	18		$	41
Rabbi Trust Funds	$	3		$	—		$	—		$	—		$	3
PSE&G
Net Derivative Liabilities	$	(49	)	$	—		$	(15	)	$	—		$	(64	)
Rabbi Trust Funds	$	6		$	—		$	—		$	(1	)	$	5


	2009		2008		2007
	Millions
Compensation Cost included in Operation and Maintenance Expense	$	27	$	21	$	22
Income Tax Benefit Recognized in Consolidated Statement of Operations	$	11	$	8	$	9


	2009
	Options		Weighted Average Exercise Price
Beginning of Year	3,784,834		$	30.67
Granted	929,800			33.22
Exercised	(483,134	)		23.41
Cancelled	(89,450	)		31.94

End of Year	4,142,050		$	32.06

Exercisable at End of Year	1,750,712		$	29.61


Options	Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Outstanding at December 31, 2009	7.7	$	4,931,854
Exercisable at December 31, 2009	6.0	$	6,364,975


			2007
	2009	2008	January - June	December
Expected Volatility	29.00%	29.30%	24.87%	24.60%
Risk-Free Interest Rate	2.84%	1.72%	4.72%	3.78%
Expected Life (Years)	6.25	6.25	6.25	6.25
Weighted Average Dividend Yield	4.00%	4.30%	3.46%	2.40%


	2009		2008		2007
	Millions

Total Intrinsic Value of Options Exercised	$	4	$	4	$	43
Cash Received from Options Exercised	$	11	$	5	$	49
Tax Benefit Realized from Options Exercised	$	3	$	3	$	18


	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2009	308,284		$	36.89
Granted	8,800			30.18
Vested	(75,674	)		38.61
Cancelled	(4,852	)		40.05

Outstanding at December 31, 2009	236,558		$	36.03	1.12	$	7,865,554


	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Years Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2009	428,911		$	41.76
Granted	328,725			30.19
Vested	(86,714	)		45.67
Cancelled	(20,733	)		32.35

Outstanding at December 31, 2009	650,189		$	35.69	3.06	$	21,618,784


	Shares		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
Outstanding at January 1, 2009	768,620		$	37.05
Granted	236,400			36.41
Vested	(232,390	)		43.81
Cancelled	(53,166	)		36.55

Outstanding at December 31, 2009	719,464		$	34.70	2.02	$	23,922,178


Other Income	Power		PSE&G		Other(A)		Consolidated Total
	Millions
For the Year Ended December 31, 2009:
NDT Fund Gains	$	183	$	—	$	—	$	183
NDT Interest, Dividend and Other Income		44		—		—		44
Other Interest and Dividend Income		6		1		2		9
Other		1		7		3		11

Total Other Income	$	234	$	8	$	5	$	247

For the Year Ended December 31, 2008:
NDT Fund Gains	$	354	$	—	$	—	$	354
NDT Interest, Dividend and Other Income		53		—		—		53
Other Interest and Dividend Income		7		5		6		18
Other		2		7		2		11

Total Other Income	$	416	$	12	$	8	$	436

For the Year Ended December 31, 2007:
NDT Fund Gains	$	164	$	—	$	—	$	164
NDT Interest, Dividend and Other Income		50		—		—		50
Other Interest and Dividend Income		24		10		2		36
Other		4		6		19		29

Total Other Income	$	242	$	16	$	21	$	279


Other Deductions	Power		PSE&G		Other(A)		Consolidated Total
	Millions
For the Year Ended December 31, 2009:
NDT Fund Losses and Expenses	$	117	$	—	$	—	$	117
Other		18		3		23		44

Total Other Deductions	$	135	$	3	$	23	$	161

For the Year Ended December 31, 2008:
NDT Fund Losses and Expenses	$	302	$	—	$	—	$	302
Other		14		4		16		34

Total Other Deductions	$	316	$	4	$	16	$	336

For the Year Ended December 31, 2007:
NDT Fund Losses and Expenses	$	94	$	—	$	—	$	94
Loss on Early Retirement of Debt		—		—		47		47
Other		3		4		40		47

Total Other Deductions	$	97	$	4	$	87	$	188


	2009			2008			2007
	Millions
Net Income	$	1,592		$	1,188		$	1,335
Income from Discontinued Operations, including Gain on Disposal, net of tax benefit		—			205			10

Income from Continuing Operations		1,592			983			1,325
Preferred Dividends		(4	)		(4	)		(4	)

Income from Continuing Operations, excluding Preferred Dividends	$	1,596		$	987		$	1,329


Income Taxes:
Operating Income:
Current Expense:
Federal	$	562		$	1,430		$	705
State		257			123			156

Total Current		819			1,553			861

Deferred Expense:
Federal		178			(768	)		150
State		44			144			57

Total Deferred		222			(624	)		207

Foreign		—			—			—
Investment Tax Credit		3			(3	)		(4	)

Total Income Taxes	$	1,044		$	926		$	1,064

Pre-Tax Income	$	2,640		$	1,913		$	2,393

Tax Computed at Statutory Rate @ 35%	$	924		$	669		$	837
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)		201			169			144
Foreign Operations		—			—			82
Uncertain Tax Positions		(73	)		135			29
Other		(8	)		(47	)		(28	)

Sub-Total		120			257			227

Total Income Tax Provision	$	1,044		$	926		$	1,064

Effective Income Tax Rate		39.5%			48.4%			44.5%


	2009		2008
Deferred Income Taxes	Millions
Assets:
Current (net)	$	52	$	52


Noncurrent:
Unrecovered Investment Tax Credit		14		14
OCI		28		44
Cumulative Effect of a Change in Accounting Principle		11		11
New Jersey Corporate Business Tax		52		81
OPEB		269		242
Cost of Removal		51		51
Nuclear Decommissioning		—		17
Related to Foreign Operations		—		6
Development Fees		1		8
Contractual Liabilities & Environmental Costs		35		35
MTC		17		17
Related to Uncertain Tax Positions		507		1,017
Other		15		11

Total Noncurrent		1,000		1,554

Total Assets	$	1,052	$	1,606


Liabilities:
Current (net)	$	—	$	—

Noncurrent:
Plant-Related Items		2,133		1,878
Nuclear Decommissioning		113		—
Securitization		771		888
Leasing Activities		1,246		1,883
Partnership Activity		63		87
Repair Allowance Deferred Carrying Charge		13		16
Conservation Costs		26		20
Energy Clause Recoveries		72		37
Pension Costs		124		74
Related to Foreign Operations		7		—
Asset Retirement Obligations		325		325
Taxes Recoverable Through Future Rate (net)		159		164
Other		35		(1	)

Total Noncurrent Liabilities		5,087		5,371

Total Liabilities	$	5,087	$	5,371


Summary of Accumulated Deferred Income Taxes:
Net Current Assets	$	52	$	52
Net Noncurrent Liability		4,087		3,817

		4,035		3,765
ITC		52		48
Current Portion of Deferred Income Taxes Transferred		52		52

Total Deferred Income Taxes and ITC	$	4,139	$	3,865


	2009			2008			2007
	Millions
Net Income	$	1,189		$	1,115		$	992
Loss from Discontinued Operations, net of tax benefit		—			—			(8	)

Income from Continuing Operations	$	1,189		$	1,115		$	1,000


Income Taxes:
Operating Income:
Current Expense:
Federal	$	418		$	467		$	447
State		144			130			121

Total Current		562			597			568

Deferred Expense:
Federal		177			86			86
State		30			16			22

Total Deferred		207			102			108

Total Income Taxes	$	769		$	699		$	676

Pre-Tax Income	$	1,958		$	1,814		$	1,676

Tax Computed at Statutory Rate @ 35%	$	685		$	635		$	587
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)		113			95			93
Manufacturing Deduction		(7	)		(22	)		(13	)
Nuclear Decommissioning Trust		7			(10	)		6
Uncertain Tax Positions		(26	)		4			2
Other		(3	)		(3	)		1

Sub-Total		84			64			89

Total Income Tax Provision	$	769		$	699		$	676

Effective Income Tax Rate		39.3%			38.5%			40.3%


Deferred Income Taxes	2009		2008
Assets:	Millions
Noncurrent:
Cumulative Effect of a Change in Accounting Principle	$	11	$	11
New Jersey Corporate Business Tax		69		76
Pension Costs		48		63
Cost of Removal		51		51
Nuclear Decommissioning		—		17
Contractual Liabilities & Environmental Costs		35		35
Related to Uncertain Tax positions		—		9
Other		15		43

Total Noncurrent		229		305

Total Assets	$	229	$	305

Liabilities:
Noncurrent:
Plant-Related Items	$	349	$	292
OCI		10		5
Nuclear Decommissioning		113		—
Partnership Activity		34		46
Asset Retirement Obligations		325		325
Related to Uncertain Tax Positions		37		—

Total Noncurrent		868		668

Total Liabilities	$	868	$	668

Summary of Accumulated Deferred Income Taxes:
Net Noncurrent Liability	$	639	$	363
ITC		5		5

Total Deferred Income Taxes and ITC	$	644	$	368


	2009			2008			2007
	Millions

Net Income		321			360			376
Preferred Dividends		(4	)		(4	)		(4	)

Income from Continuing Operations, excluding Preferred Dividends	$	325		$	364		$	380

Income Taxes:
Operating Income:
Current Expense:
Federal	$	7		$	74		$	214
State		22			38			67

Total Current		29			112			281

Deferred Expense:
Federal		158			92			(22	)
State		38			26			1

Total Current		196			118			(21	)

Investment Tax Credit		1			(2	)		(3	)

Total Income Taxes	$	226		$	228		$	257

Pre-Tax Income	$	551		$	592		$	637

Tax Computed at Statutory Rate @ 35%	$	193		$	207		$	223
Increase (Decrease) Attributable to Flow-Through of Certain Tax Adjustments:
State Income Taxes (net of federal income tax)		39			42			44
Uncertain Tax Positions		(3	)		(18	)		(3	)
Other		(3	)		(3	)		(7	)

Sub-Total		33			21			34

Total Income Tax Provision	$	226		$	228		$	257

Effective Income Tax Rate		41.0%			38.5%			40.3%


	2009		2008
	Millions

Deferred Income Taxes
Assets:
Current (net)	$	52	$	52

Noncurrent:
Unrecovered ITC		14		14
New Jersey Corporate Business Tax		57		98
OPEB		263		237
MTC		17		17

Total Noncurrent	$	351	$	366

Total Assets	$	403	$	418

Liabilities:
Noncurrent:
Plant-Related Items	$	1,780	$	1,586
OCI		3		1
Securitization		771		888
Repair Allowance Deferred Carrying Charge		13		16
Conservation Costs		26		20
Energy Clause Recoveries		72		37
Pension Costs		141		105
Related to Uncertain Tax Positions		23		18
Taxes Recoverable Through Future Rate(net)		159		164
Other		33		25

Total Noncurrent Liabilities		3,021		2,860

Total Liabilities	$	3,021	$	2,860

Summary of Accumulated Deferred Income Taxes:
Net Current Assets	$	52	$	52
Net NonCurrent Liability		2,670		2,494

		2,618		2,442
ITC		40		39
Current Portion of Deferred Income Taxes Transferred		52		52

Total Deferred Income Taxes and ITC	$	2,710	$	2,533


2009	PSEG			Power			PSE&G			Energy Holdings
	Millions

Total Amount of Unrecognized Tax Benefits at January 1, 2009	$	1,403		$	30		$	27		$	1,323
Increases as a Result of Positions Taken in a Prior Period		37			1			8			26
Decreases as a Result of Positions Taken in a Prior Period		(580	)		(39	)		(9	)		(530	)
Increases as a Result of Positions Taken during the Current Period		15			1			10			4
Decreases as a Result of Positions Taken during the Current Period		(19	)		(18	)		(1	)		—
Decreases as a Result of Settlements with Taxing Authorities		(5	)		(5	)		—			—
Decreases due to Lapses of Applicable Statute of Limitations		(15	)		(12	)		—			(3	)

Total Amount of Unrecognized Tax Benefits at December 31, 2009	$	836		$	(42	)	$	35		$	820

Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits		(508	)		37			22			(551	)
Regulatory Asset—Unrecognized Tax Benefits		(55	)		—			(55	)		—

Total Amount of Unrecognized Tax Benefits that if Recognized, Would Impact the Effective Tax Rate (including Interest and Penalties)	$	273		$	(5	)	$	2		$	269


2008	PSEG			Power			PSE&G			Energy Holdings
	Millions

Total Amount of Unrecognized Tax Benefits at January 1, 2008	$	556		$	31		$	78		$	449
Increases as a Result of Positions Taken in a Prior Period		903			6			3			869
Decreases as a Result of Positions Taken in a Prior Period		(124	)		(9	)		(63	)		(52	)
Increases as a Result of Positions Taken during the Current Period		90			2			10			78
Decreases as a Result of Positions Taken during the Current Period		(2	)		—			(1	)		(1	)
Decreases as a Result of Settlements with Taxing Authorities		(20	)		—			—			(20	)
Decreases due to Lapses of Applicable Statute of Limitations		—			—			—			—

Total Amount of Unrecognized Tax Benefits at December 31, 2008	$	1,403		$	30		$	27		$	1,323

Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits		(1,017	)		(10	)		18			(1,009	)
Regulatory Asset—Unrecognized Tax Benefits		(39	)		—			(39	)		—

Total Amount of Unrecognized Tax Benefits that if Recognized, Would Impact the Effective Tax Rate (including Interest and Penalties)	$	347		$	20		$	6		$	314


2007	PSEG			Power			PSE&G			Energy Holdings
	Millions

Total Amount of Unrecognized Tax Benefits at January 1, 2007	$	485		$	31		$	55		$	398
Increases as a Result of Positions Taken in a Prior Period		81			3			14			64
Decreases as a Result of Positions Taken in a Prior Period		(35	)		(8	)		—			(27	)
Increases as a Result of Positions Taken during the Current Period		41			5			10			26
Decreases as a Result of Positions Taken during the Current Period		(16	)		—			(1	)		(12	)
Decreases as a Result of Settlements with Taxing Authorities		—			—			—			—
Decreases due to Lapses of Applicable Statute of Limitations		—			—			—			—

Total Amount of Unrecognized Tax Benefits at December 31, 2007	$	556		$	31		$	78		$	449

Accumulated Deferred Income Taxes Associated with Unrecognized Tax Benefits		(286	)		(14	)		(14	)		(260	)
Regulatory Asset—Unrecognized Tax Benefits		(38	)		—			(38	)		—

Total Amount of Unrecognized Tax Benefits that if Recognized, Would Impact the Effective Tax Rate (including Interest and Penalties)	$	232		$	17		$	26		$	189


	PSEG	Power	PSE&G
United States
Federal	2001-2008	2001-2008	2001-2008
New Jersey	2005-2008	N/A	2005-2008
Pennsylvania	2004-2008	N/A	2004-2008
Connecticut	2003-2008	N/A	N/A
Texas	2008	N/A	N/A
California	2003-2008	N/A	N/A
Indiana	2003-2008	N/A	N/A
Ohio	2004-2008	N/A	N/A
New York	2004-2008	2004-2008	N/A
Foreign
Chile	2004-2008	N/A	N/A
Peru	2002-2008	N/A	N/A


	For the Years Ended December 31,
	2009				2008				2007
	Basic		Diluted		Basic		Diluted		Basic		Diluted
EPS Numerator:
Earnings (Millions)
Continuing Operations	$	1,592	$	1,592	$	983	$	983	$	1,325	$	1,325
Discontinued Operations		—		—		205		205		10		10

Net Income	$	1,592	$	1,592	$	1,188	$	1,188	$	1,335	$	1,335

EPS Denominator (Thousands):
Weighted Average Common Shares Outstanding		505,986		505,986		507,693		507,693		507,560		507,560
Effect of Stock Options		—		183		—		341		—		678
Effect of Stock Performance Share Units		—		786		—		322		—		560
Effect of Restricted Stock		—		—		—		—		—		12
Effect of Restricted Stock Units		—		109		—		71		—		3

Total Shares		505,986		507,064		507,693		508,427		507,560		508,813

EPS:
Continuing Operations	$	3.15	$	3.14	$	1.94	$	1.93	$	2.61	$	2.60
Discontinued Operations		—		—		0.40		0.41		0.02		0.02

Net Income	$	3.15	$	3.14	$	2.34	$	2.34	$	2.63	$	2.62


	Power		PSE&G		Energy Holdings		Other			Consolidated Total
	Millions

For the Year Ended December 31, 2009:
Total Operating Revenues	$	7,143	$	8,243	$	221	$	(3,201	)	$	12,406
Depreciation and Amortization		203		608		11		16			838
Operating Income		2,086		858		163		14			3,121
Income from Equity Method Investments		—		—		39		—			39
Interest Income		6		1		5		(6	)		6
Interest Expense		167		312		37		11			527
Income before Income Taxes		1,958		551		117		10			2,636
Income Tax Expense		769		226		45		4			1,044
Net Income		1,189		325		72		6			1,592
Segment Earnings		1,189		321		72		10			1,592
Gross Additions to Long-Lived Assets	$	869	$	855	$	62	$	8		$	1,794
As of December 31, 2009:
Total Assets	$	10,333	$	16,533	$	2,605	$	(741	)	$	28,730
Investments in Equity Method Subsidiaries	$	36	$	—	$	176		—		$	212


	Power		PSE&G		Energy Holdings			Other			Consolidated Total
	Millions

For the Year Ended December 31, 2008:
Total Operating Revenues	$	8,483	$	9,038	$	(368	)	$	(3,831	)	$	13,322
Depreciation and Amortization		181		583		12			16			792
Operating Income (Loss)		2,125		909		(437	)		16			2,613
Income from Equity Method Investments		—		—		37			—			37
Interest Income		7		5		21			(16	)		17
Interest Expense		192		325		57			20			594
Income (Loss) before Income Taxes		1,814		592		(459	)		(38	)		1,909
Income Tax Expense (Benefit)		699		228		9			(10	)		926
Income (Loss) from Continuing Operations		1,115		364		(468	)		(28	)		983
Income from Discontinued Operations, net of tax (including Gain on Disposal)		—		—		205			—			205
Net Income (Loss)		1,115		364		(263	)		(28	)		1,188
Segment Earnings (Loss)		1,115		360		(263	)		(24	)		1,188
Gross Additions to Long-Lived Assets	$	978	$	761	$	3		$	29		$	1,771
As of December 31, 2008:
Total Assets	$	10,266	$	16,406	$	3,502		$	(1,125	)	$	29,049
Investments in Equity Method Subsidiaries	$	35	$	—	$	180		$	—		$	215


	Power			PSE&G		Energy Holdings		Other			Consolidated Total
	Millions

For the Year Ended December 31, 2007:
Total Operating Revenues	$	7,422		$	8,493	$	167	$	(3,405	)	$	12,677
Depreciation and Amortization		158			591		12		13			774
Operating Income		1,789			957		89		11			2,846
Income from Equity Method Investments		—			—		115		—			115
Interest Income		24			10		14		(12	)		36
Interest Expense		185			332		125		85			727
Income (Loss) before Income Taxes		1,676			637		188		(112	)		2,389
Income Tax Expense (Benefit)		676			257		176		(45	)		1,064
Income (Loss) from Continuing Operations		1,000			380		12		(67	)		1,325
Income (Loss) from Discontinued Operations, net of tax (including (Loss) Gain on Disposal)		(8	)		—		18		—			10
Net Income (Loss)		992			380		30		(67	)		1,335
Segment Earnings (Loss)		992			376		30		(63	)		1,335
Gross Additions to Long-Lived Assets	$	715		$	570	$	38	$	25		$	1,348


	For the Years Ended December 31,
Related Party Transactions	2009			2008			2007
	Millions

Revenue from Affiliates:
Billings to PSE&G through BGS (A)	$	1,322		$	1,453		$	1,163
Billings to PSE&G through BGSS (A)		1,838			2,316			2,208

Total Revenue from Affiliates	$	3,160		$	3,769		$	3,371

Expense Billings from Affiliates:
Administrative Billings from Services (B)	$	(153	)	$	(166	)	$	(144	)

Total Expense Billings from Affiliates	$	(153	)	$	(166	)	$	(144	)


	As of December 31,
Related Party Balances	2009			2008
	Millions

Receivables from PSE&G through BGS and BGSS Contracts(A)	$	404		$	475
Receivables from PSE&G Related to Gas Supply Hedges for BGSS(A)		120			319
Payable to Services(B)		(27	)		(26	)
Tax Sharing Payable to PSEG(C)		(28	)		(38	)
Current Unrecognized Tax Receivable from PSEG(C)		3			—
Payable to PSEG		(13	)		—

Accounts Receivable—Affiliated Companies, net	$	459		$	730

Short-Term Loan (from) to Affiliate (Demand Note (from) to PSEG)(D)	$	(194	)	$	55

Working Capital Advances to Services(E)	$	17		$	17

Long-Term Accrued Taxes Receivable (Payable)(C)	$	39		$	(29	)


	For the Years Ended December 31,
Related Party Transactions	2009			2008			2007
	Millions

Expense Billings from affiliates:
Billings from Power through BGS(A)	$	(1,322	)	$	(1,453	)	$	(1,163	)
Billings from Power through BGSS(A)		(1,838	)		(2,316	)		(2,208	)
Administrative Billings from Services(B)		(240	)		(264	)		(238	)

Total Expense Billings from Affiliates	$	(3,400	)	$	(4,033	)	$	(3,609	)


	As of December 31,
Related Party Transactions	2009			2008
	Millions

Payable to Power through BGS and BGSS Contracts(A)	$	(404	)	$	(475	)
Payable to Power Related to Gas Supply Hedges for BGSS(A)		(120	)		(319	)
Payable to Power for SREC liability(F)		(7	)		—
Payable to Services(B)		(42	)		(54	)
Tax Sharing Receivable from PSEG(C)		13			21
Current Unrecognized Tax Receivable from PSEG(C)		61			55
Receivable from PSEG		3			9

Accounts Payable—Affiliated Companies, net	$	(496	)	$	(763	)

Working Capital Advances to Services(E)	$	33		$	33

Long-Term Accrued Taxes Payable(C)	$	(96	)	$	(82	)


	Calendar Quarter Ended
	March 31,				June 30,					September 30,				December 31,
	2009		2008		2009		2008			2009		2008		2009		2008
PSEG Consolidated:	Millions

Operating Revenues	$	3,920	$	3,792	$	2,560	$	2,550		$	3,040	$	3,718	$	2,886	$	3,262
Operating Income		927		811		637		177			924		965		633		660
Income (Loss) from Continuing Operations		444		435		311		(166	)		488		476		349		238
Income (Loss) from Discontinued Operations, including Gain (Loss) on Disposal, net of tax		—		13		—		16			—		180		—		(4	)
Net Income (Loss)		444		448		311		(150	)		488		656		349		234
Earnings Per Share:
Basic:
Income (Loss) from Continuing Operations		0.88		0.86		0.61		(0.32	)		0.96		0.94		0.70		0.46
Net Income (Loss)		0.88		0.88		0.61		(0.29	)		0.96		1.29		0.70		0.46
Diluted:
Income (Loss) from Continuing Operations		0.88		0.85		0.61		(0.32	)		0.96		0.94		0.69		0.46
Net Income (Loss)		0.88		0.88		0.61		(0.29	)		0.96		1.29		0.69		0.46
Weighted Average Common Shares Outstanding:
Basic		506		508		506		508			506		508		506		506
Diluted		507		510		507		509			507		508		507		508


	Calendar Quarter Ended
	March 31,				June 30,				September 30,				December 31,
	2009		2008		2009		2008		2009		2008		2009		2008
Power:	Millions

Operating Revenues	$	2,464	$	2,475	$	1,363	$	1,838	$	1,564	$	2,162	$	1,752	$	2,008
Operating Income	$	608	$	516	$	402	$	490	$	652	$	703	$	424	$	416
Income from Continuing Operations	$	314	$	276	$	246	$	268	$	382	$	388	$	247	$	183
Net Income	$	314	$	276	$	246	$	268	$	382	$	388	$	247	$	183


	Calendar Quarter Ended
	March 31,				June 30,				September 30,				December 31,
	2009		2008		2009		2008		2009		2008		2009		2008
PSE&G:	Millions

Operating Revenues	$	2,735	$	2,618	$	1,643	$	1,858	$	1,943	$	2,274	$	1,922	$	2,288
Operating Income	$	288	$	279	$	150	$	159	$	226	$	248	$	194	$	223
Income from Continuing Operations	$	124	$	137	$	44	$	52	$	88	$	98	$	69	$	77
Net Income	$	124	$	137	$	44	$	52	$	88	$	98	$	69	$	77
Earnings Available to PSEG	$	123	$	136	$	43	$	51	$	87	$	97	$	68	$	76


	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
For the Year Ended December 31, 2009:
Operating Revenues	$	—		$	7,932		$	494		$	(1,283	)	$	7,143
Operating Expenses		4			5,846			491			(1,284	)		5,057

Operating Income (Loss)		(4	)		2,086			3			1			2,086
Equity Earnings (Losses) of Subsidiaries		1,208			(20	)		—			(1,188	)		—
Other Income		57			256			2			(81	)		234
Other Deductions		(14	)		(120	)		(1	)		—			(135	)
Other Than Temporary Impairments		—			(60	)		—			—			(60	)
Interest Expense		(145	)		(73	)		(29	)		80			(167	)
Income Tax Benefit (Expense)		87			(861	)		5			—			(769	)
Income (Loss) on Discontinued Operations, net of Tax Benefit		—			—			—			—			—

Net Income (Loss)	$	1,189		$	1,208		$	(20	)	$	(1,188	)	$	1,189

As of December 31, 2009:
Current Assets		3,039			5,614			560			(6,871	)	$	2,342
Property, Plant and Equipment, net		61			4,872			1,452			—			6,385
Investment in Subsidiaries		4,865			1,093			—			(5,958	)		—
Noncurrent Assets		253			1,452			52			(151	)		1,606

Total Assets	$	8,218		$	13,031		$	2,064		$	(12,980	)	$	10,333

Current Liabilities	$	107		$	7,167		$	818		$	(6,869	)	$	1,223
Noncurrent Liabilities		522			1,002			150			(152	)		1,522
Long-Term Debt		3,121			—			—			—			3,121
Member’s Equity		4,468			4,862			1,096			(5,959	)		4,467

Total Liabilities and Member’s Equity	$	8,218		$	13,031		$	2,064		$	(12,980	)	$	10,333

For the Year Ended December 31, 2009:
Net Cash Provided By (Used In) Operating Activities	$	383		$	2,520		$	10		$	(1,255	)	$	1,658
Net Cash Provided By (Used In) Investing Activities	$	490		$	(1,320	)	$	(50	)	$	228		$	(652	)
Net Cash Provided By (Used In) Financing Activities	$	(873	)	$	(1,202	)	$	66		$	1,027		$	(982	)


	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
For the Year Ended December 31, 2008:
Operating Revenues	$	—		$	8,887		$	839		$	(1,243	)	$	8,483
Operating Expenses		—			6,890			710			(1,242	)		6,358

Operating Income (Loss)		—			1,997			129			(1	)		2,125
Equity Earnings (Losses) of Subsidiaries		1,120			24			—			(1,144	)		—
Other Income		162			501			2			(249	)		416
Other Deductions		(13	)		(302	)		—			(1	)		(316	)
Other Than Temporary Impairments		—			(219	)		—			—			(219	)
Interest Expense		(209	)		(147	)		(87	)		251			(192	)
Income Tax Benefit (Expense)		55			(734	)		(20	)		—			(699	)

Net Income (Loss)	$	1,115		$	1,120		$	24		$	(1,144	)	$	1,115

As of December 31, 2008:
Current Assets		2,395			5,507			667			(5,636	)		2,933
Property, Plant and Equipment, net		44			4,513			1,486			—			6,043
Investment in Subsidiaries		5,195			822			—			(6,017	)		—
Noncurrent Assets		244			1,166			67			(187	)		1,290

Total Assets	$	7,878		$	12,008		$	2,220		$	(11,840	)	$	10,266

Current Liabilities	$	371		$	5,880		$	1,241		$	(5,637	)	$	1,855
Noncurrent Liabilities		532			935			156			(187	)		1,436
Long-Term Debt		2,653			—			—			—			2,653
Member’s Equity		4,322			5,193			823			(6,016	)		4,322

Total Liabilities and Member’s Equity	$	7,878		$	12,008		$	2,220		$	(11,840	)	$	10,266

For the Year Ended December 31, 2008:
Net Cash Provided By (Used In) Operating Activities	$	(416	)	$	2,306		$	5		$	(89	)	$	1,806
Net Cash Provided By (Used In) Investing Activities	$	918		$	(2,787	)	$	(80	)	$	908		$	(1,041	)
Net Cash Provided By (Used In) Financing Activities	$	(500	)	$	490		$	87		$	(821	)	$	(744	)


	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Total
	Millions
For the Year Ended December 31, 2007:
Operating Revenues	$	—		$	7,836		$	740		$	(1,154	)	$	7,422
Operating Expenses		4			6,152			631			(1,154	)	$	5,633

Operating Income (Loss)		(4	)		1,684			109			—		$	1,789
Equity Earnings (Losses) of Subsidiaries		981			11			—			(992	)		—
Other Income		191			295			3			(247	)	$	242
Other Deductions		(1	)		(96	)		—			—		$	(97	)
Other Than Temporary Impairments		—			(73	)		—			—		$	(73	)
Interest Expense		(197	)		(161	)		(75	)		248		$	(185	)
Income Tax Benefit (Expense)		22			(680	)		(18	)		—		$	(676	)
(Loss) on Discontinued Operations, net of tax benefit		—			—			(8	)		—			(8	)

Net Income (Loss)	$	992		$	980		$	11		$	(991	)	$	992

For the Year Ended December 31, 2007:
Net Cash Provided By (Used In) Operating Activities	$	1,238		$	1,595		$	(524	)	$	(1,044	)	$	1,265
Net Cash Provided By (Used In) Investing Activities	$	(232	)	$	(596	)	$	(116	)	$	555		$	(389	)
Net Cash Provided By (Used In) Financing Activities	$	(1,006	)	$	(1,001	)	$	642		$	489		$	(876	)


Column A	Column B		Column C				Column D			Column E
			Additions
Description	Balance at Beginning of Period		Charged to cost and expenses		Charged to other accounts— describe		Deductions— describe			Balance at End of Period
					Millions
2009
Allowance for Doubtful Accounts	$	66	$	110	$	—	$	97	(A)	$	79
Materials and Supplies Valuation Reserve		5		1		—		1	(B)		5
Other Valuation Allowances		8		—		—		—			8
2008
Allowance for Doubtful Accounts	$	46	$	89	$	—	$	69	(A)	$	66
Materials and Supplies Valuation Reserve		6				—		1	(B)		5
Other Valuation Allowances		8				—		—			8
2007
Allowance for Doubtful Accounts	$	47	$	64	$	—	$	65	(A)	$	46
Materials and Supplies Valuation Reserve		8		2		—		4	(B)		6
Other Valuation Allowances		8		—		—		—			8


Column A	Column B		Column C				Column D			Column E
			Additions
Description	Balance at Beginning of Period		Charged to cost and expenses		Charged to other accounts— describe		Deductions— describe			Balance at End of Period
					Millions
2009
Materials and Supplies
Valuation Reserve	$	5	$	1	$	—	$	1	(A)	$	5
2008
Materials and Supplies
Valuation Reserve	$	6	$	—	$	—	$	1	(A)	$	5
2007
Materials and Supplies
Valuation Reserve	$	8	$	2	$	—	$	4	(A)	$	6


Column A	Column B		Column C				Column D			Column E
			Additions
Description	Balance at Beginning of Period		Charged to cost and expenses		Charged to other accounts— describe		Deductions— describe			Balance at End of Period
					Millions
2009
Allowance for Doubtful
Accounts	$	65	$	110	$	—	$	97	(A)	$	78
2008
Allowance for Doubtful
Accounts	$	45	$	89	$	—	$	69	(A)	$	65
2007
Allowance for Doubtful
Accounts	$	46	$	64	$	—	$	65	(A)	$	45


PUBLIC SERVICE ENTERPRISE GROUP INCORPORATED

By:		/S/ RALPH IZZO

		Ralph Izzo
		Chairman of the Board, President and
		Chief Executive Officer


PSEG POWER LLC

By:		/S/ WILLIAM LEVIS

		William Levis
		President and
		Chief Operating Officer


PUBLIC SERVICE ELECTRIC AND GAS COMPANY

By:		/S/ RALPH LAROSSA

		Ralph LaRossa
		President and Chief Operating Officer

Business description of Public-Service-Enterprise-Group-Incorporated from last 10-k form