PSEG Global announced plans to sell its ownership interests in SAESA Group, a major electric distribution and transmission company in Chile. SAESA Group serves over 2.6 million people across six distribution companies and has over 100 MW of generation capacity. PSEG engaged Credit Suisse to advise on the sale. Proceeds from the sale, along with other recent asset sales, will be used to redeem $200 million in bonds. The sale is expected to dilute earnings in the near term but strengthen PSEG's financial position overall.

1. Investor News NYSE:PEG
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Kathleen A. Lally, Vice President – Investor Relations Phone: 973-430-6565
Greg McLaughlin, Sr. Investor Relations Analyst Phone: 973-430-6568
Yaeni Kim, Sr. Investor Relations Analyst Phone: 973-430-6596
PSEG GLOBAL TO EXPLORE SALE OF SAESA GROUP OF CHILEAN
ELECTRIC DISTRIBUTION COMPANIES
(December 18, 2007 – Newark, N.J.) – PSEG Global announced today it intends to sell its
ownership interests in the SAESA Group of companies (SAESA) in southern Chile. The
SAESA Group companies (subsidiaries of PSEG Global) are major electric distribution and
transmission businesses with 638,000 customers and a total of 118 MWs of wind, hydro,
diesel and gas electric generation capacity. PSEG also announced that it has engaged
Credit Suisse to act as an advisor to PSEG in the sale of SAESA.
SAESA is Chile’s second largest electric distribution company in terms of geographical
coverage with a total franchise area 390,000 square kilometers. The SAESA group serves
26 percent of Chile’s population, providing electric service to more than 2.6 million
inhabitants.
The principal companies that make up the SAESA Group include:
• SAESA (Sociedad Austral de Electricidad S.A.), an electric distribution company in
Chile’s IX and X Regions, serving 310,000 customers;
• Frontel (Empressa Electrica de las Frontera S.A.), an electric distribution company
operating in Chile’s VIII and IX Regions, serving 276,000 customers;
• Edelaysen (Empressa Electrica de Aisen S.A.), a vertically integrated generation
(41MW), transmission and distribution company operating in Chile’s XI Region, serving
35,000 customers;
• STS, a transmission company that owns, operates and maintains 949 kilometers of
transmission lines in Chile’s VII, IX and X Region;
• Luz Osorno, an electric distribution company in Chile’s X Region with 17,000
customers; and
• PSEG Generacion, an electric generation company with approximately 70 MWs of
diesel and natural gas powered capacity.
“The SAESA Group of companies has grown rapidly and we are pleased with the dramatic
improvement in operations over the last two years in particular. These are very good
companies in high growth areas. The market today is providing attractive valuations for
quality Latin American electric distribution companies,” said Matthew McGrath, president
PSEG Global.

2. SAESA’s results for all of 2007 (approximately $0.19 per share) will be reported in
Discontinued Operations. Despite this loss of earnings, strong performance from the balance
of its portfolio could allow PSEG’s operating earnings for 2007 to fall in the middle of the
company’s 2007 guidance of $5.15 to $5.45 per share. PSEG is also reiterating its 2008
guidance for operating earnings of $5.60 - $6.10 per share. On a full year basis, the sale of
SAESA could result in dilution of $0.07-$0.08 per share. The impact on 2008, however,
should be greater than this amount given that the net sale proceeds will only be available for
a portion of the year.
PSEG Energy Holdings, in conjunction with the recent closing of other asset sales in Latin
America, plans to use some of its cash on hand to call $200 million of PSEG Energy
Holdings’ 10% Senior Notes due 10/1/09. The call will be in compliance with the terms of the
bond indenture with final pricing established 3 days prior to expiration of the 30 day call
notice period. Thomas O’Flynn, president, PSEG Energy Holdings and executive vice
president and CFO, PSEG said that, “the redemption is in keeping with the long-term
financial goals of Energy Holdings; the sale of assets provides cash for dividend distribution
to the parent company to further enhance its strong financial position, allows for a balanced
reduction in debt at the subsidiary level and further increases our ability to pursue growth
opportunities in our core U.S. markets.”
PSEG Global’s primary investments include 100 percent ownership in two 1,000-mw electric
generation plants in Texas, and partial ownership of a number of smaller plants in California,
Hawaii and New Hampshire. PSEG Global also has small investments in electric generation
plants in Italy, India and Venezuela.
PSEG Global is a subsidiary of PSEG Energy Holdings and an indirect subsidiary of PSEG
(NYSE: PEG). PSEG is a diversified energy company based in Newark, New Jersey. Its
other main subsidiaries include PSEG Power, a merchant generation company and PSE&G,
an electric and gas distribution company in New Jersey.
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

3. 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.