EXHIBIT 99

  1903-2003

                       Investor News                                              NYSE:PEG
[PSEG LOGO]
                       For further information, contact:
                          Brian Smith, Director, Investor Relations          Phone: 973-430-6564
celebrating 100 years     Sue Carson, Director, Financial Communications     Phone: 973-430-6565
                          Greg McLaughlin, Sr. Investor Relations Analyst    Phone: 973-430-6568
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                                                                   June 16, 2003

                          PSEG SAYS IT IS DISAPPOINTED
                            BY MOODY'S RATINGS ACTION


      Public Service Enterprise Group (PSEG) said that it was disappointed by
Moody's Investors Service's move today to place the ratings of PSEG and two
subsidiaries, PSEG Power and PSEG Energy Holdings, under review for possible
downgrade.

      "We have had ongoing dialogue with Moody's since it placed the businesses
on negative outlook last October and we believed we had addressed all concerns
expressed by the agency," said Thomas M. O'Flynn, PSEG's chief financial
officer. "We have taken very specific steps to strengthen our balance sheet,
improve our liquidity position, enhance our merchant energy and leveraged lease
portfolios and curtail our international investments."

      Since last Fall, PSEG has:

    o Issued more than $1.2 billion of equity and equity-like securities.

    o Improved liquidity by refinancing bank lines and reducing short-term debt
      levels, resulting in available capacity of about $1.9 billion at the end
      of the first quarter of 2003.

    o Successfully termed up sales of energy and capacity at PSEG Power in both
      10-month and 34-month tranches as part of New Jersey's Basic Generation
      Service (BGS) auction process.

    o Improved the risk profile of PSEG Energy Holdings by:







    o Reducing capital expenditures and operating costs at PSEG Energy Holdings
      to free up additional cash flow.

    o Repaying $252 million of PSEG Capital Corp. maturing debt with a
      successful new issue of $350 million.

    o Refinancing nearly $200 million of short-term, non-recourse project debt
      in local markets in Chile and Peru.

    o Receiving payments on a current basis for all energy-related leveraged
      leases.

      "Overall, PSEG has made considerable progress on many fronts, which we
believe supports and even enhances our current ratings. This is reflected in the
fact that the trading levels of all our securities have improved dramatically to
date since last Fall," O'Flynn said.

      O'Flynn said PSEG will continue its dialogue with Moody's to address the
concerns it voiced today.







                          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 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 domestic and
international power projects; 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.