Exhibit 99.2

                          NOTICE OF GUARANTEED DELIVERY

                                 PSEG POWER LLC

OFFER TO EXCHANGE ITS 6-7/8% SENIOR NOTES DUE 2006, 7-3/4% SENIOR NOTES DUE 2011
AND 8-5/8% SENIOR NOTES DUE 2031, WHICH HAVE BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 FOR ANY AND ALL OUTSTANDING 6-7/8% SENIOR NOTES DUE 2006,
7-3/4% SENIOR NOTES DUE 2011 AND 8-5/8% SENIOR NOTES DUE 2031, 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 91/8% Senior Notes
due 2004 (the "Original Notes"), of PSEG Power LLC ("Power"), 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
          DAYLIGHT TIME, ON , 2000 (THE "EXPIRATION DATE"), UNLESS THE
                      EXCHANGE OFFER IS EXTENDED BY POWER.

                  THE EXCHANGE AGENT FOR THE EXCHANGE OFFER IS:

                              THE BANK OF NEW YORK

         Facsimile Transmissions:

<TABLE>
<CAPTION>
<S>                               <C>                             <C>
                                    Facsimile Transmissions:
By Hand Or Overnight Delivery:    (Eligible Institutions Only)    By Registered Or Certified Mail:
    The Bank of New York                                                 The Bank of New York

  Corporate Trust Department                                        Corporate Trust Department

         Attention:                                                         Attention:

                                   To Confirm by Telephone
                                  or for Information Call:
</TABLE>

      (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.


<PAGE>

      Ladies and Gentlemen:

      The undersigned hereby tenders to PSEG Power LLC, a Delaware limited
liability company ("Power"), in accordance with Power's 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.