PSEG Projects Strong Earnings and Long Term Growth

Marks Successful Transition From Regulated Utility

To Competitive Global Energy Company



Apr 17, 2001, 01:00 ET from Public Service Enterprise Group

    NEWARK, N.J., April 17 /PRNewswire/ -- Speaking today at PSEG's annual
 shareholder meeting, chairman and chief executive officer E. James Ferland
 declared that a growing domestic merchant energy business, an expanding
 international generation and distribution operation, and solid performance by
 PSEG's regulated electric and gas utility make growth prospects for the energy
 and energy services company the strongest in its 98-year history.  Ferland
 expressed confidence that PSEG can both maintain its current dividend and
 achieve a 7% compound growth rate over the next five years.
     "PSEG has successfully completed the transformation from a regulated New
 Jersey utility to a competitive global energy company," Ferland declared.  "In
 the past, our growth was largely driven by earnings of PSE&G, our regulated
 utility, but our earnings mix has changed.  Two of our unregulated
 subsidiaries, PSEG Power and PSEG Global, are now expected to grow by more
 than 25% a year, and these companies should contribute more than 70% of
 earnings this year."
     He noted that the company's changing business mix may result in greater
 volatility in year-to-year earnings, but declared that in the long term, "we
 remain very optimistic about our financial outlook."
     Joining Ferland in addressing shareholders were Robert C. Murray, PSEG's
 chief financial officer; Robert J. Dougherty Jr., president and chief
 operating officer, PSEG Energy Holdings; Alfred C. Koeppe, president and chief
 operating officer, PSE&G; and Frank Cassidy, president and chief operating
 officer, PSEG Power.
     Cassidy in outlining the growth strategy of his 18-month-old company, said
 PSEG Power is expected to achieve a fundamental annual growth rate of 25% a
 year for the next five years.  He explained that PSEG Power's plans to nearly
 double capacity over the next five years is being accomplished through
 strategies that include expanding at existing sites, increasing ownership in
 facilities where it is part owner, purchasing existing generation plants
 around the country, and developing new power plants in the Midwest.  Cassidy
 added that as PSEG Power grows, its trading operation would expand as well.
 Currently the 15th largest energy trading business by volume in the United
 States, PSEG Power is the only one of the 15 that trades only regionally.
     Cassidy pointed out that PSEG Power's generation fleet is one of the most
 diverse in the nation in terms of fuel, technology, and market segments.
 "This mix gives us the flexibility to find the most efficient ways to meet the
 energy needs of the marketplace and to leverage our energy trading capability
 across the day and night -- and in any season."
     Dougherty, President of PSEG Energy Holdings, highlighted his company's
 growing importance in helping PSEG meet its revenue projections.  He stated
 that PSEG Global, which serves international markets, is currently managing
 the largest construction program in its history and, as a result of plants
 beginning operation, its 2001 earnings are expected to more than double 2000's
 results.
     "PSEG Global plants that have been in development for years will begin to
 produce power, earnings and cash for the first time in 2001," said Dougherty,
 "and over the next five years, Global's compound earnings growth rate is
 expected to be about 35 percent."
     PSEG Global is adding distribution companies as well and, with announced
 additions, will serve more than 3.7 million customers, slightly more than the
 3.5 million customers of PSEG's New Jersey utility, PSE&G.  The service
 territories are very different, however, with PSEG Global's total territory
 roughly 120 times the size of PSE&G's.
     Beginning his remarks, PSE&G's Al Koeppe declared, "You can be proud of
 how this company has worked to smoothly implement deregulation for the
 residents and businesses of New Jersey."
     Koeppe explained that electric rates from August 1999 through August 2002
 will drop nearly 14 percent.  "Rates will then be at the lowest point in
 decades," he said.  "At the end of the transition, rates will need to rise as
 costs we face continue to increase, but we will work hard to ensure that
 electric rates remain lower than when the transition to deregulation began."
     "While rates are important, our customers value reliability even more,"
 said Koeppe.  "PSE&G is a reliability leader in New Jersey and we are
 committed to improving on our already strong performance."
     Discussing the changing makeup of the company, Ferland commented.  "PSE&G
 could be expected to produce a steady, predictable stream of earnings and cash
 flow due to its regulated nature.  PSEG Power has special growth opportunities
 for at least the next three to five years -- as the U.S. labors to reestablish
 inadequate generation reserve margins -- and should provide attractive, if
 less spectacular, business opportunities thereafter.  PSEG Energy Holdings,
 and particularly PSEG Global is pursuing international energy markets where
 growth opportunities are likely to exist for decades to come."
     "This strong combination of diverse, energy-based companies should allow
 us to achieve our seven percent annual growth target through 2005," Ferland
 added.
 
     The shareholder meeting was held at the New Jersey Performing Arts Center,
 Newark, N.J.
 
     Public Service Enterprise Group (PSEG) (NYSE:   PEG) is a publicly traded
 diversified energy and energy services company with three principal
 subsidiaries: PSE&G, a regulated New Jersey electric and gas delivery company
 with 3.5 million customers; PSEG Power, a major unregulated power generation
 and trading company; and, PSEG Energy Holdings, a holding company for other
 PSEG unregulated businesses.
 
     PSEG Energy Holdings, in turn, has three main subsidiaries: PSEG Energy
 Technologies; a total energy services company targeting industrial and
 commercial customers; PSEG Global, an international power company with
 electric generation and distribution systems around the world; and, PSEG
 Resources, an investor in energy-related assets.  PSEG has assets of more than
 $21 billion and ranks 275 in the 2001 FORTUNE 500 list of companies.  The PSEG
 website address is http://www.pseg.com.
 
     Statements in this press release regarding PSEG's business, which are not
 historical facts, are "forward-looking statements" that involve risks and
 uncertainties. For a discussion of such risks and uncertainties, which could
 cause actual results to differ from those contained in the forward-looking
 statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
 the most recently ended fiscal year.
 
 

SOURCE Public Service Enterprise Group
    NEWARK, N.J., April 17 /PRNewswire/ -- Speaking today at PSEG's annual
 shareholder meeting, chairman and chief executive officer E. James Ferland
 declared that a growing domestic merchant energy business, an expanding
 international generation and distribution operation, and solid performance by
 PSEG's regulated electric and gas utility make growth prospects for the energy
 and energy services company the strongest in its 98-year history.  Ferland
 expressed confidence that PSEG can both maintain its current dividend and
 achieve a 7% compound growth rate over the next five years.
     "PSEG has successfully completed the transformation from a regulated New
 Jersey utility to a competitive global energy company," Ferland declared.  "In
 the past, our growth was largely driven by earnings of PSE&G, our regulated
 utility, but our earnings mix has changed.  Two of our unregulated
 subsidiaries, PSEG Power and PSEG Global, are now expected to grow by more
 than 25% a year, and these companies should contribute more than 70% of
 earnings this year."
     He noted that the company's changing business mix may result in greater
 volatility in year-to-year earnings, but declared that in the long term, "we
 remain very optimistic about our financial outlook."
     Joining Ferland in addressing shareholders were Robert C. Murray, PSEG's
 chief financial officer; Robert J. Dougherty Jr., president and chief
 operating officer, PSEG Energy Holdings; Alfred C. Koeppe, president and chief
 operating officer, PSE&G; and Frank Cassidy, president and chief operating
 officer, PSEG Power.
     Cassidy in outlining the growth strategy of his 18-month-old company, said
 PSEG Power is expected to achieve a fundamental annual growth rate of 25% a
 year for the next five years.  He explained that PSEG Power's plans to nearly
 double capacity over the next five years is being accomplished through
 strategies that include expanding at existing sites, increasing ownership in
 facilities where it is part owner, purchasing existing generation plants
 around the country, and developing new power plants in the Midwest.  Cassidy
 added that as PSEG Power grows, its trading operation would expand as well.
 Currently the 15th largest energy trading business by volume in the United
 States, PSEG Power is the only one of the 15 that trades only regionally.
     Cassidy pointed out that PSEG Power's generation fleet is one of the most
 diverse in the nation in terms of fuel, technology, and market segments.
 "This mix gives us the flexibility to find the most efficient ways to meet the
 energy needs of the marketplace and to leverage our energy trading capability
 across the day and night -- and in any season."
     Dougherty, President of PSEG Energy Holdings, highlighted his company's
 growing importance in helping PSEG meet its revenue projections.  He stated
 that PSEG Global, which serves international markets, is currently managing
 the largest construction program in its history and, as a result of plants
 beginning operation, its 2001 earnings are expected to more than double 2000's
 results.
     "PSEG Global plants that have been in development for years will begin to
 produce power, earnings and cash for the first time in 2001," said Dougherty,
 "and over the next five years, Global's compound earnings growth rate is
 expected to be about 35 percent."
     PSEG Global is adding distribution companies as well and, with announced
 additions, will serve more than 3.7 million customers, slightly more than the
 3.5 million customers of PSEG's New Jersey utility, PSE&G.  The service
 territories are very different, however, with PSEG Global's total territory
 roughly 120 times the size of PSE&G's.
     Beginning his remarks, PSE&G's Al Koeppe declared, "You can be proud of
 how this company has worked to smoothly implement deregulation for the
 residents and businesses of New Jersey."
     Koeppe explained that electric rates from August 1999 through August 2002
 will drop nearly 14 percent.  "Rates will then be at the lowest point in
 decades," he said.  "At the end of the transition, rates will need to rise as
 costs we face continue to increase, but we will work hard to ensure that
 electric rates remain lower than when the transition to deregulation began."
     "While rates are important, our customers value reliability even more,"
 said Koeppe.  "PSE&G is a reliability leader in New Jersey and we are
 committed to improving on our already strong performance."
     Discussing the changing makeup of the company, Ferland commented.  "PSE&G
 could be expected to produce a steady, predictable stream of earnings and cash
 flow due to its regulated nature.  PSEG Power has special growth opportunities
 for at least the next three to five years -- as the U.S. labors to reestablish
 inadequate generation reserve margins -- and should provide attractive, if
 less spectacular, business opportunities thereafter.  PSEG Energy Holdings,
 and particularly PSEG Global is pursuing international energy markets where
 growth opportunities are likely to exist for decades to come."
     "This strong combination of diverse, energy-based companies should allow
 us to achieve our seven percent annual growth target through 2005," Ferland
 added.
 
     The shareholder meeting was held at the New Jersey Performing Arts Center,
 Newark, N.J.
 
     Public Service Enterprise Group (PSEG) (NYSE:   PEG) is a publicly traded
 diversified energy and energy services company with three principal
 subsidiaries: PSE&G, a regulated New Jersey electric and gas delivery company
 with 3.5 million customers; PSEG Power, a major unregulated power generation
 and trading company; and, PSEG Energy Holdings, a holding company for other
 PSEG unregulated businesses.
 
     PSEG Energy Holdings, in turn, has three main subsidiaries: PSEG Energy
 Technologies; a total energy services company targeting industrial and
 commercial customers; PSEG Global, an international power company with
 electric generation and distribution systems around the world; and, PSEG
 Resources, an investor in energy-related assets.  PSEG has assets of more than
 $21 billion and ranks 275 in the 2001 FORTUNE 500 list of companies.  The PSEG
 website address is http://www.pseg.com.
 
     Statements in this press release regarding PSEG's business, which are not
 historical facts, are "forward-looking statements" that involve risks and
 uncertainties. For a discussion of such risks and uncertainties, which could
 cause actual results to differ from those contained in the forward-looking
 statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
 the most recently ended fiscal year.
 
 SOURCE  Public Service Enterprise Group