PSEG Declares 10% Increase in Quarterly Dividend - Announces 2-For-1 Stock Split

NEWARK, N.J., Jan. 15 /PRNewswire-FirstCall/ -- The board of directors of
Public Service Enterprise Group (NYSE: PEG) declared a 10% increase in the
company's common stock dividend today and announced a two-for-one stock split
for PSEG's common stock shareholders. PSEG has paid annual dividends on an
uninterrupted basis since 1907.
Public Service Enterprise Group shareholders of record on January 25,
2008, will receive one additional share of common stock for each share held on
that date. This move doesn't change the proportionate interest that a
shareholder maintains in the company. The additional shares will be
distributed on or after February 4, 2008.
The board increased the quarterly dividend to 64.5 cents per share, a 10
percent increase over the company's existing quarterly dividend rate of 58.5
cents per share. The first dividend in 2008 is payable on March 31, 2008, to
shareholders of record on March 10, 2008. (This dividend payment will be
occurring after the effective date of the stock split. On a post-split basis,
shareholders will receive a quarterly common stock dividend of 32.25 cents per
share.)
The board's action increases the indicated annual common stock dividend
rate to $2.58 per share from $2.34 per share. This new dividend rate would
represent a 44% payout of the mid-range of Public Service Enterprise Group's
2008 operating earnings guidance of $5.60-$6.10 per share. (On a post-split
basis the new annual common dividend rate would be $1.29 per share, and PSEG's
2008 operating earnings guidance would be $2.80-$3.05 per share.)
Ralph Izzo, chairman, president and chief executive officer, said, "We are
pleased to be able to increase the cash return to our shareholders. Our
balance sheet has been strengthened over the past year with significant debt
reduction, and our cash flow remains strong. We have indicated that the
anticipated increase in operating earnings would improve our ability to grow
the common dividend. This is the fifth consecutive year that PSEG has
increased its common dividend. This latest increase by the board resets the
dividend to a payout of earnings in the middle of a range, 40%-50%, which
provides flexibility for dividend growth and new investment. Although we
expect to be in a position to grow the dividend, future increases are expected
to be more modest." All future changes in the common stock dividend are
subject to board approval.
"The board of directors," Izzo said, "views these actions as positive
indicators for the future of our company." He went on to say that, "2008
represents the 101st year that Public Service Enterprise Group or its
predecessor company has paid dividends to the holders of its common stock.
This history of paying common dividends represents a commitment to the
shareholder on which we place a great deal of value."
FORWARD-LOOKING STATEMENT
Readers are cautioned that statements contained in this press release
about our and our subsidiaries' future performance, including future revenues,
earnings, strategies, prospects and all other statements that are not purely
historical, are forward-looking statements for purposes of the safe harbor
provisions under The Private Securities Litigation Reform Act of 1995.
Although we believe that our expectations are based on reasonable assumptions,
we can give no assurance they will be achieved. The results or events
predicted in these statements may differ materially from actual results or
events. Factors which could cause results or events to differ from current
expectations include, among other things: the effects of weather; the
performance of generating units and transmission systems; the availability and
prices for oil, gas, coal, nuclear fuel, capacity and electricity; changes in
the markets for electricity and other energy-related commodities; changes in
the number of participants and the risk profile of such participants in the
energy marketing and trading business; the effectiveness of our risk
management and internal controls systems; the effects of regulatory decisions
and changes in law; changes in competition in the markets we serve; the
ability to recover regulatory assets and other potential stranded costs; the
outcomes of litigation and regulatory proceedings or inquiries; the timing and
success of efforts to develop generation, transmission and distribution
projects; continued market based rate authority, including any necessary
mitigation; environmental regulations and responses to global climate change;
ability to realize tax benefits and favorably resolve tax audit claims;
conditions of the capital markets and equity markets; advances in technology;
changes in accounting standards; changes in interest rates and in financial
and foreign currency markets generally; the economic and political climate and
growth in the areas in which we conduct our activities; and changes in
corporate strategies. For further information, please refer to our Annual
Report on Form 10-K 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
release. 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 estimates change, unless otherwise required
by applicable securities laws.
SOURCE Public Service Enterprise Group

Denise Denk of Public Service Enterprise Group, +1-973-430-6336