(Source: PRNewswire)NEWARK, N.J., Sept. 8 /PRNewswire/ -- PSEG Power LLC ("PSEG Power"), a wholly-owned subsidiary of Public Service Enterprise Group Incorporated , announced today the expiration and results of its offer (the "exchange offer") to eligible holders to exchange any and all of the outstanding 8.50% Senior Notes due 2011 (the "Energy Holdings notes") of its affiliate, PSEG Energy Holdings, L.L.C., held by them for newly-issued PSEG Power 5.32% Senior Notes due 2016 (the "Power notes"), fully and unconditionally guaranteed by PSEG Power's three principal operating subsidiaries (the "subsidiary guarantees"), plus a cash payment plus a cash early participation payment, if eligible.

As of midnight, New York City time, on September 4, 2009 (the "expiration date"), according to Global Bondholder Services Corporation, the exchange agent for the exchange offer, the aggregate principal amount of Energy Holdings notes validly tendered and not validly withdrawn was $367,837,000, which represents approximately 74.3% of the outstanding Energy Holdings notes. PSEG Power has accepted all of the Energy Holdings notes validly tendered and not validly withdrawn as of the expiration date. The settlement date for the exchange offer is expected to be on or about September 14, 2009 (the "settlement date").

Holders of the Energy Holdings notes who validly tendered and did not validly withdraw Energy Holdings notes at or prior to 5:00 p.m., New York City time, on August 24, 2009 (the "early participation date"), will receive on the settlement date the "total exchange consideration", which will be, for each $1,000 principal amount of Energy Holdings notes tendered and accepted, $1,100.00 of consideration comprised of:

   --  $825.00 principal amount of Power notes, plus   --  a cash payment equal to $245.00, plus    --  a cash "early participation payment" equal to $30.00   

Eligible holders who validly tendered Energy Holdings notes after the early participation date but at or prior to the expiration date will receive on the settlement date the total exchange consideration minus the early participation payment.

The Power notes and the subsidiary guarantees will not be registered under the Securities Act of 1933 or any state securities laws. The Power notes and the subsidiary guarantees may not be offered or sold in the United States or to any U.S. persons except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933 and applicable state securities laws. PSEG Power will enter into a registration rights agreement with respect to the Power notes.