PEG Public Service Enterprise Group Inc

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. DATASOURCE: Public Service Enterprise Group CONTACT: Denise Denk of Public Service Enterprise Group, +1-973-430-6336 Web site: http://www.pseg.com/

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