PSEG Estimates The Utility's Cost Of Superstorm Sandy Restoration

      PSEG Estimates The Utility's Cost Of Superstorm Sandy Restoration

Company maintains 2012 operating earnings guidance of $2.25 - $2.50 per share

PR Newswire

NEWARK, N.J., Dec. 4, 2012

NEWARK, N.J., Dec. 4, 2012 /PRNewswire/ -- PSEG estimates that the cost
associated with the restoration of PSE&G's distribution and transmission
system following the impact of Superstorm Sandy and the subsequent Nor'easter
as approximately $250 - $300 million.

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Superstorm Sandy left 1.7 million of our electric customers without power
during the course of the storm and caused severe damage to our transmission
and distribution system throughout our service territory as well as to some of
our generation infrastructure in the northern part of New Jersey.

Superstorm Sandy's strong winds and heavy rainfall resulted in a storm surge
which caused the Hudson, Hackensack and Passaic rivers to overflow causing
damage to switching stations, substations and generating infrastructure.

Over the two-week period following the storm, including the Nor'easter, we
restored power to more customers than in any other storm in our history. We
brought in 1,000 out-of-state line workers and tree trimmers in preparation
for the storm and that number grew to more than 4,000 at the height of the
restoration. As part of the storm restoration process, approximately 48,000
trees were removed or trimmed and we replaced/repaired over 2,400 utility

Crews have continued working to make repairs permanent and return the system
to its normal design. At the same time, we are analyzing the best ways to
protect the system from this type of storm in the future.

The estimated cost of restoration of $250 - $300 million associated with
Superstorm Sandy includes both expenses and capital related to the
restoration, and the Company expects at least 85% of those costs to be
deferred or capitalized for future distribution or transmission recovery. The
estimate does not include potential future costs to permanently repair PSE&G's
damaged infrastructure or to modify the infrastructure to reduce the risk of
damage of future storms.

PSEG continues to forecast operating earnings for 2012 of $2.25 - $2.50 per
share. The forecast recognizes the impact of storm-related costs to be
expensed at PSE&G. However, storm-related expenses at PSEG Power, which are
still being assessed, will be treated as one-time in nature and excluded from
operating earnings given the unusual nature of the storm on Power's
operations. PSEG expects to provide investors with estimates for the costs at
Power prior to the release of the Company's fourth-quarter earnings.

We intend to seek recovery for insured property damage at both PSE&G and at
PSEG Power, however, no assurances can be given relative to the timing or
amount of such recovery.

Forward-Looking Statement

Readers are cautioned that statements contained in this presentation about our
future performance, including future revenues, earnings, strategies,
prospects, consequences and all other statements that are not purely
historical, are forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of 1995. When
used herein, the words "anticipate", "intend", "estimate", "believe",
"expect", "plan", "should", "hypothetical", "potential", "forecast",
"project", variations of such words and similar expressions are intended to
identify forward-looking statements. Although we believe that our expectations
are based on reasonable assumptions, they are subject to risks and
uncertainties and we can give no assurance they will be achieved. The results
or developments projected or predicted in these statements may differ
materially from what may actually occur. Factors which could cause results or
events to differ from current expectations include, but are not limited to:

  oadverse changes in the demand for or price of the capacity and energy that
    we sell into wholesale electricity markets,
  oadverse changes in energy industry law, policies and regulation, including
    market structures and a potential shift away from competitive markets
    toward subsidized market mechanisms, transmission planning and cost
    allocation rules, including rules regarding how transmission is planned
    and who is permitted to build transmission in the future, and reliability
  oany inability of our transmission and distribution businesses to obtain
    adequate and timely rate relief and regulatory approvals from federal and
    state regulators,
  ochanges in federal and state environmental regulations that could increase
    our costs or limit our operations,
  ochanges in nuclear regulation and/or general developments in the nuclear
    power industry, including various impacts from any accidents or incidents
    experienced at our facilities or by others in the industry, that could
    limit operations of our nuclear generating units,
  oactions or activities at one of our nuclear units located on a multi-unit
    site that might adversely affect our ability to continue to operate that
    unit or other units located at the same site,
  oany inability to balance our energy obligations, available supply and
    trading risks,
  oany deterioration in our credit quality, or the credit quality of our
    counterparties, including in our leveraged leases,
  oavailability of capital and credit at commercially reasonable terms and
    conditions and our ability to meet cash needs,
  oany inability to realize anticipated tax benefits or retain tax credits,
  ochanges in the cost of, or interruption in the supply of, fuel and other
    commodities necessary to the operation of our generating units,
  odelays in receipt of necessary permits and approvals for our construction
    and development activities,
  odelays or unforeseen cost escalations in our construction and development
  oany inability to achieve or continue to sustain, our expected levels of
    operating performance,
  oincrease in competition in energy supply markets as well as competition
    for certain rate-based transmission projects,
  oany inability to realize anticipated tax benefits or retain tax credits,
  ochallenges associated with recruitment and/or retention of a qualified
  oadverse performance of our decommissioning and defined benefit plan trust
    fund investments and changes in funding requirements, and
  ochanges in technology and customer usage patterns.

For further information, please refer to our Annual Report on Form 10-K,
including Item 1A. Risk Factors, and subsequent reports on Form 10-Q and Form
8-K filed with the Securities and Exchange Commission. These documents address
in further detail our business, industry issues and other factors that could
cause actual results to differ materially from those indicated in this
presentation. In addition, any forward-looking statements included herein
represent our estimates only as of today and should not be relied upon as
representing our estimates as of any subsequent date. While we may elect to
update forward-looking statements from time to time, we specifically disclaim
any obligation to do so, even if our internal estimates change, unless
otherwise required by applicable securities laws.

Public Service Enterprise Group (NYSE:PEG) is a publicly traded diversified
energy company with annual revenues of more than $11 billion, and three
principal subsidiaries: PSEG Power, Public Service Electric and Gas Company
(PSE&G) and PSEG Energy Holdings.

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SOURCE Public Service Enterprise Group (PSEG)

Contact: Paul Rosengren, +1-973-430-5911,
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