Stephen Byrd to Become President and CEO of Energy Storage & Power (ES&P)

Randall Mehrberg named chairman of ES&P and president of PSEG Energy Holdings

NEWARK, N.J., June 10 /PRNewswire-FirstCall/ -- PSEG and Energy Storage &
Power, LLC (ES&P) jointly announced today that Stephen C. Byrd will become
president and chief executive officer for ES&P, effective June 22. Byrd will
oversee ES&P's efforts to bring the advanced, second generation compressed air
energy storage (CAES 2) technology and related power augmentation to the
market. The move is driven by PSEG's belief in the value and need for energy
storage technology and an increased commitment to see it successfully added to
the nation's energy mix.

Byrd had been senior vice president of finance, business development and M&A
for PSEG, as well as president of PSEG Energy Holdings. Prior to joining
PSEG, Byrd had been executive director of the global energy and utilities
group at Morgan Stanley.

In related moves, Randall (Randy) Mehrberg, executive vice president of
strategy and development for PSEG, will become chairman of ES&P and president
of PSEG Energy Holdings.

ES&P is a joint venture between PSEG and Dr. Michael Nakhamkin, chief
technology officer of the joint venture, the world's leading CAES technology
expert and the holder of patents on the second generation of CAES technology
and related power augmentation technology.

"As a former investment banker and with experience developing renewable energy
projects as the head of PSEG Energy Holdings, Stephen is the right person to
lead this exciting joint venture," said Ralph Izzo, president, chairman and
CEO of PSEG.

"Large-scale energy storage is a critical missing piece of the energy puzzle;
as renewable generation sources become an increasingly large source of power
supply, the importance of energy storage will increase dramatically," Izzo
said. "This game-changing technology greatly enhances the value of renewable
generation sources, particularly wind generation, by addressing the
intermittent nature of these sources, as well as by shifting wind energy from
the evening to peak day time hours. ES&P's CAES 2 product is low-cost, large
scale, highly reliable and flexible. It uses less fuel and emits less carbon.
We believe it will play a strong role in the continued growth of renewable
generation and in the nation's efforts to reduce carbon emissions."

ES&P's patented technology stores off-peak energy, in the form of compressed
air in underground or above ground reservoirs, and releases this energy during
peak hours. CAES can be used for load management of intermittent renewable
energy resources, to increase the load factor of base load plants, or as a
stand-alone intermediate generation source for capturing energy arbitrage,
capacity payments and ancillary services.

ES&P exclusively markets, licenses and supports the development and supervises
project execution of the second generation of compressed air energy storage
technology. In addition to energy storage, ES&P possesses a related power
augmentation technology that can increase power output of a variety of fossil
fuel-fired plants for a fraction of the cost of constructing a new power
plant. This power augmentation technology provides an attractive alternative
for power plant owners that are considering expansion of their generation
fleets.

"We already have proven CAES 2 technology that is based on existing and tested
components, ensuring high reliability and availability. We have unique
expertise in development and execution of the first generation CAES plant.
With Stephen, we gain an executive with the experience and skills to grow our
business," said Dr. Nakhamkin. "With the rapid growth of wind power, energy
storage will be vital to ensuring the reliability of the electric grid as well
as maximizing the economic value of wind generation and base load power
plants. Stephen's strong financial and project management experience will
help ensure that ES&P succeeds in bringing the second generation of CAES to
the market."

Public Service Enterprise Group (PSEG) (NYSE: PEG) is a publicly traded
diversified energy company with annual revenues of more than $13 billion, and
three principal subsidiaries: PSEG Power, PSEG Energy Holdings, and Public
Service Electric and Gas Company (PSE&G).

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SOURCE Public Service Enterprise Group (PSEG)

Paul Rosengren, +1-973-430-5911, for Public Service Enterprise Group (PSEG)