EXHIBIT 99.2 NOTICE OF GUARANTEED DELIVERY PSEG ENERGY HOLDINGS INC. OFFER TO EXCHANGE ITS 8.50% SENIOR NOTES DUE 2011, WHICH HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 FOR ANY AND ALL OUTSTANDING 8.50% SENIOR NOTES DUE 2011, WHICH HAVE NOT BEEN SO REGISTERED. PURSUANT TO THE PROSPECTUS DATED ______________, 2001 As set forth in the Exchange Offer (as described in the Prospectus (as defined below)), this form or one substantially equivalent hereto must be used to accept the Exchange Offer if certificates for unregistered 8.50% Senior Notes due 2011 (the Original Notes), of PSEG Energy Holdings Inc. (Energy Holdings), are not immediately available or time will not permit a holder's Original Notes or other required documents to reach the Exchange Agent on or prior to the Expiration Date, or the procedure for book-entry transfer cannot be completed on a timely basis. This form may be delivered by facsimile transmission, by registered or certified mail, by hand, or by overnight delivery service to the Exchange Agent. See The Exchange Offer -- Procedures for Tendering Original Notes in the Prospectus. THE EXCHANGE OFFER AND WITHDRAWAL RIGHTS WILL EXPIRE AT 5:00 P.M., EASTERN TIME, ON _________________, 2001 (THE EXPIRATION DATE), UNLESS THE EXCHANGE OFFER IS EXTENDED BY ENERGY HOLDINGS. THE EXCHANGE AGENT FOR THE EXCHANGE OFFER IS: FIRST UNION NATIONAL BANK Facsimile Transmissions: By Hand Or Overnight Delivery: (Eligible Institutions Only) By Registered Or Certified Mail: First Union National Bank 704-590-7628 By Hand Or Overnight Delivery: First Union Customer First Union National Bank Information Center First Union Customer 1525 West W.T. Harris Blvd. Information Center Corporate Trust Department 1525 West W.T. Harris Blvd. Charlotte, N.C.* 28262 Corporate Trust Department Attention: Michael Klotz Charlotte, N.C.* 28262 Attention: Michael Klotz To Confirm by Telephone or for Information Call: Marsha Rice 704-590-7413 (Originals of all documents sent by facsimile should be sent promptly by registered or certified mail, by hand, or by overnight delivery service.) DELIVERY OF THIS NOTICE OF GUARANTEED DELIVERY TO AN ADDRESS OR TRANSMISSION OF INSTRUCTIONS VIA FACSIMILE OTHER THAN AS SET FORTH ABOVE WILL NOT CONSTITUTE A VALID DELIVERY. Ladies and Gentlemen: The undersigned hereby tenders to PSEG Energy Holdings Inc., a New Jersey corporation (Energy Holdings), in accordance with Energy Holdings' offer, upon the terms and subject to the conditions set forth in the prospectus dated _______________, 2001 (the Prospectus), and in the accompanying Letter of Transmittal, receipt of which is hereby acknowledged, $____________ in the aggregate principal amount of Original Notes pursuant to the guaranteed delivery procedures described in the Prospectus. - -------------------------------------------------------------------------------- Name(s) of Registered Holder(s): _________________________________________ (Please Type or Print) Address: _________________________________________________________________ Area Code and Telephone Number: __________________________________________ Certificate Number(s) for Original Notes (if available): _________________ Total Principal Amount Tendered and Represented by Certificate(s): $ _________________________________________ Signature of Registered Holder(s): _______________________________________ Date: ____________________________________ |_| The Depository Trust Company (check if Original Notes will be tendered by book-entry transfer) Account Number ___________________________ - ---------------------------------------------------------------------------- - ---------------------------------------------------------------------------- THE GUARANTEE BELOW MUST BE COMPLETED GUARANTEE (Not to be used for signature guarantee) The undersigned, being a member firm of a registered national securities exchange, a member of the National Association of Securities Dealers, Inc., or a commercial bank or trust company having an office in the United States, hereby guarantees (a) that the above-named person(s) own(s) the Original Notes tendered hereby within the meaning of Rule 14e-4 (Rule 14e-4) under the Securities Exchange Act of 1934, as amended, (b) that the tender of such Original Notes complies with Rule 14e-4, and (c) to deliver to the Exchange Agent the certificates representing the Original Notes tendered hereby or confirmation of book-entry transfer of such Original Notes into the Exchange Agent's account at The Depository Trust Company, in proper form for transfer, together with the Letter of Transmittal (or facsimile thereof), properly completed and duly executed, with any required signature guarantees and any other required documents, within three New York Stock Exchange trading days after the expiration date. Name of Firm: ______________________________________________________________ Address: ___________________________________________________________________ Area Code and Telephone Number: ____________________________________________ Authorized Signature: ______________________________________________________ Name: ______________________________________________________________________ Title: _____________________________________________________________________ Date: ______________________________________________________________________ NOTE: DO NOT SEND CERTIFICATES OF ORIGINAL NOTES WITH THIS FORM. CERTIFICATES FOR ORIGINAL NOTES SHOULD BE SENT ONLY WITH YOUR LETTER OF TRANSMITTAL. - ----------------------------------------------------------------------------