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                                    FORM T-1

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                            STATEMENT OF ELIGIBILITY
                   UNDER THE TRUST INDENTURE ACT OF 1939 OF A
                    CORPORATION DESIGNATED TO ACT AS TRUSTEE

                      CHECK IF AN APPLICATION TO DETERMINE
                      ELIGIBILITY OF A TRUSTEE PURSUANT TO
                             SECTION 305(b)(2) |__|

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                              THE BANK OF NEW YORK
               (Exact name of trustee as specified in its charter)

New York                                                     13-5160382
(State of incorporation                                      (I.R.S. employer
if not a U.S. national bank)                                 identification no.)

One Wall Street, New York, N.Y.                              10286
(Address of principal executive offices)                     (Zip code)

                                   ----------

                                 PSEG Power LLC
               (Exact name of obligor as specified in its charter)

Delaware                                                     22-3663480
(State or other jurisdiction of                              (I.R.S. employer
incorporation or organization)                               identification no.)

                                 PSEG Fossil LLC
               (Exact name of obligor as specified in its charter)

Delaware                                                     22-3663481
(State or other jurisdiction of                              (I.R.S. employer
incorporation or organization)                               identification no.)

                                PSEG Nuclear LLC
               (Exact name of obligor as specified in its charter)

Delaware                                                     22-3663482
(State or other jurisdiction of                              (I.R.S. employer
incorporation or organization)                               identification no.)


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                       PSEG Energy Resources and Trade LLC
               (Exact name of obligor as specified in its charter)

Delaware                                                     22-3663483
(State or other jurisdiction of                              (I.R.S. employer
incorporation or organization)                               identification no.)

80 Park Plaza - T16
Newark, New Jersey                                           07102
(Address of principal executive offices)                     (Zip code)

                                   ----------

                          6-7/8% Senior Notes due 2006
                          7-3/4% Senior Notes due 2011
                          8-5/8% Senior Notes due 2031
                       (Title of the indenture securities)

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1. General information. Furnish the following information as to the Trustee:

      (a) Name and address of each examining or  supervising  authority to which
it is subject.

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          Name                                        Address

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Superintendent of Banks of the State of      2 Rector Street, New York, N.Y.
New York                                     10006, and Albany, N.Y. 12203

Federal Reserve Bank of New York             33 Liberty Plaza, New York,
                                             N.Y.  10045

Federal Deposit Insurance Corporation        Washington, D.C.  20429

New York Clearing House Association          New York, New York   10005

      (b) Whether it is authorized to exercise corporate trust powers.

      Yes.

2. Affiliations with Obligor.

      If  the  obligor  is an  affiliate  of the  trustee,  describe  each  such
affiliation.

      None.

16. List of Exhibits.

      Exhibits identified in parentheses below, on file with the Commission, are
      incorporated  herein by reference as an exhibit  hereto,  pursuant to Rule
      7a-29  under the Trust  Indenture  Act of 1939 (the  "Act")  and 17 C.F.R.
      229.10(d).

      1.    A copy of the  Organization  Certificate  of The  Bank  of New  York
            (formerly Irving Trust Company) as now in effect, which contains the
            authority  to  commence  business  and a grant of powers to exercise
            corporate  trust  powers.  (Exhibit 1 to Amendment No. 1 to Form T-1
            filed with Registration Statement No. 33-6215, Exhibits 1a and 1b to
            Form T-1 filed with Registration  Statement No. 33-21672 and Exhibit
            1 to Form T-1 filed with Registration Statement No. 33-29637.)

      4.    A copy of the existing  By-laws of the  Trustee.  (Exhibit 4 to Form
            T-1 filed with Registration Statement No. 33-31019.)

      6.    The  consent of the Trustee  required by Section  321(b) of the Act.
            (Exhibit  6 to  Form  T-1  filed  with  Registration  Statement  No.
            33-44051.)

      7.    A copy of the latest  report of condition  of the Trustee  published
            pursuant  to law  or to  the  requirements  of  its  supervising  or
            examining authority.


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                                    SIGNATURE

      Pursuant to the  requirements  of the Act,  the  Trustee,  The Bank of New
York, a corporation  organized  and existing  under the laws of the State of New
York,  has duly caused this  statement of eligibility to be signed on its behalf
by the undersigned,  thereunto duly authorized, all in The City of New York, and
State of New York, on the 16th day of August, 2001.

                                                       THE BANK OF NEW YORK

                                                       By: /s/ MARY LAGUMINA
                                                           -------------------
                                                           Name:  MARY LAGUMINA
                                                           Title: VICE PRESIDENT


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                                                                       EXHIBIT 7

                       Consolidated Report of Condition of

                              THE BANK OF NEW YORK

                    of One Wall Street, New York, N.Y. 10286
                     And Foreign and Domestic Subsidiaries,

a member of the Federal Reserve System, at the close of business March 31, 2001,
published in accordance with a call made by the Federal Reserve Bank of this
District pursuant to the provisions of the Federal Reserve Act.

<TABLE>
<CAPTION>
                                                                  Dollar Amounts
ASSETS                                                             In Thousands
<S>                                                                  <C>
Cash and balances due from depository institutions:
   Noninterest-bearing balances and currency and coin ..........     $ 2,811,275
   Interest-bearing balances ...................................       3,133,222
Securities:
   Held-to-maturity securities .................................         147,185
   Available-for-sale securities ...............................       5,403,923
Federal funds sold and Securities purchased under
   agreements to resell ........................................       3,378,526
Loans and lease financing receivables:
   Loans and leases held for sale ..............................          74,702
   Loans and leases, net of unearned income.....................      37,471,621
   LESS: Allowance for loan and lease losses....................         599,061
   Loans and leases, net of unearned income and allowance ......      36,872,560
Trading Assets .................................................      11,757,036
Premises and fixed assets (including capitalized
   leases) .....................................................         768,795
Other real estate owned ........................................           1,078
Investments in unconsolidated subsidiaries and
   associated companies ........................................         193,126
Customers' liability to this bank on acceptances
   outstanding .................................................         592,118
Intangible assets
   Goodwill ....................................................       1,300,295
   Other intangible assets .....................................         122,143
Other assets ...................................................       3,676,375
                                                                     -----------
Total assets ...................................................     $70,232,359
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</TABLE>


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<TABLE>
<CAPTION>
                                                                  Dollar Amounts
ASSETS                                                             In Thousands
<S>                                                                  <C>
LIABILITIES
Deposits:
   In domestic offices .........................................     $25,962,242
   Noninterest-bearing.........................................       10,586,346
   Interest-bearing............................................       15,395,896
   In foreign offices, Edge and Agreement
     subsidiaries, and IBFs ....................................      24,862,377
   Noninterest-bearing..........................................         373,085
   Interest-bearing.............................................      24,489,292
Federal funds purchased and securities sold under
   agreements to repurchase ....................................       1,446,874
Trading liabilities ............................................       2,373,361
Other borrowed money:
   (includes mortgage indebtedness and obligations
   under capitalized leases) ...................................       1,381,512
Bank's liability on acceptances executed and
   outstanding .................................................         592,804
Subordinated notes and debentures ..............................       1,646,000
Other liabilities ..............................................       5,373,065
                                                                     -----------
Total liabilities ..............................................     $63,658,235
                                                                     ===========
EQUITY CAPITAL
Common stock ...................................................       1,135,284
Surplus ........................................................       1,008,773
Retained earnings ..............................................       4,426,033
Accumulated other comprehensive income .........................           4,034
Other equity capital components ................................               0
Total equity capital ...........................................       6,574,124
                                                                     -----------
Total liabilities and equity capital ...........................     $70,232,359
                                                                     ===========
</TABLE>

      I,  Thomas  J.  Mastro,  Senior  Vice  President  and  Comptroller  of the
above-named  bank do hereby  declare  that this  Report  of  Condition  has been
prepared in conformance with the  instructions  issued by the Board of Governors
of the  Federal  Reserve  System  and is true to the  best of my  knowledge  and
belief.

                                                               Thomas J. Mastro,
                                           Senior Vice President and Comptroller

      We, the undersigned directors, attest to the correctness of this Report of
Condition  and  declare  that it has been  examined by us and to the best of our
knowledge  and belief has been


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prepared in conformance with the  instructions  issued by the Board of Governors
of the Federal Reserve System and is true and correct.

Thomas A. Renyi
Gerald L. Hassell                                                 Directors
Alan R. Griffith

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