Exhibit 10a(1)

LIMITED SUPPLEMENTAL BENEFITS PLAN

FOR CERTAIN EMPLOYEES OF

PUBLIC SERVICE ENTERPRISE GROUP
INCORPORATED

AND
ITS SUBSIDIARIES

Amended April 2007, Effective as of January 1,
2006

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LIMITED SUPPLEMENTAL BENEFITS PLAN
FOR CERTAIN EMPLOYEES OF
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDAND ITS SUBSIDIARIES

TABLE OF CONTENTS

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|--- | ------------------------------------------------- | ----
|    |                                                   | Page
|    |                                                   |     
|1.  | PURPOSE                                           | 1   
|    |                                                   |     
|2.  | DEFINITIONS
 OF TERMS USED IN THE PLAN            | 1   
|    |                                                   |     
|3.  | DEATH
 BENEFIT                                    | 5   
|    |                                                   |     
|4.  | RETIREMENT
 BENEFIT                               | 5   
|    |                                                   |     
|5.  | ADMINISTRATION
 OF ACCOUNTS                       | 9   
|    |                                                   |     
|6.  | DESIGNATION
 OF BENEFICIARIES                     | 10  
|    |                                                   |     
|7.  | LIMITATION
 OF BENEFITS                           | 11  
|    |                                                   |     
|8.  | PLAN
 DOES NOT CONSTITUTE AN EMPLOYMENT AGREEMENT | 11  
|    |                                                   |     
|9.  | AMENDMENT
 OR TERMINATION OF THE PLAN             | 11  
|    |                                                   |     
|10. | WHAT
 CONSTITUTES NOTICE                          | 11  
|    |                                                   |     
|11. | ADVANCE
 DISCLAIMER OF WAIVER                     | 12  
|    |                                                   |     
|12. | EFFECT
 OF INVALIDITY OF ANY PART OF THE PLAN     | 12  
|    |                                                   |     
|13. | PLAN
 BINDING ON ANY SUCCESSOR                    | 12  
|    |                                                   |     
|14. | FUNCTION
 OF THE COMMITTEE                        | 12  
|    |                                                   |     
|15. | LAW
 GOVERNING THE PLAN                           | 12  
|    |                                                   |     
|16. | MISCELLANEOUS                                     | 12  

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LIMITED
SUPPLEMENTAL BENEFITS PLANFOR CERTAIN EMPLOYEES OF
PUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDAND ITS SUBSIDIARIES

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
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|1. | PURPOSE. The purpose of this Plan is to assist the Company in
 attracting and retaining a stable pool of key managerial talent and to
 encourage long-term key employee commitment to the Company by providing
 selected employees of the Company with certain limited supplemental death and
 retirement benefits as defined herein. The Plan is intended to provide such
 benefits to a select group of management or highly compensated employees within
 the meaning of ERISA who terminate employment with the Company and its ERISA
 Affiliates after becoming eligible for immediately payable periodic benefits
 under the Pension Plan or for early or normal retirement benefits under the
 Cash Balance Plan.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | The Plan was last amended, effective as of January
 1, 2006, to conform the Plan to certain requirements of Code Section 409A, as
 well as to provide for lump sum payments of deminimus benefits and the terms
 contained herein shall supersede all prior iterations of the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|2. | DEFINITIONS
 OF TERMS USED IN THE PLAN. As used in
 the Plan, the following words and phrases shall have the meanings indicated:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

| |     |                                                                                                                                                    
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | Account
  Any account established pursuant to Paragraph 3(b) or 4(f) of the Plan.                                                               
| |     |                                                                                                                                                    
| | (b) | Assets
  All amounts that have been credited to an Employees Account in accordance
 with Paragraph 3(b), 4(f), or 5(b) of the Plan.            
| |     |                                                                                                                                                    
| | (c) | Beneficiary
  The individual(s) and/or entity(ies) designated in writing by a
 Participant in the form attached to the Plan as Schedule A.      
| |     |                                                                                                                                                    
| | (d) | Cash
 Balance Plan  The Cash Balance Pension Plan of Public
 Service Enterprise Group Incorporated.                                             
| |     |                                                                                                                                                    
| | (e) | Change
 in Control  For the purposes of the Plan, a Change in
 Control of the Company shall mean the occurrence of any of the following
 events:

| |     |                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) | any person (within the meaning of Section 13(d) of
 the Securities Exchange Act of 1934, as amended from time to time (the
 Act)) is or becomes the beneficial owner within the meaning of Rule 13d-3
 under the Act (a Beneficial Owner), directly or indi­rectly, of the
 Companys securities of (not including in the securities beneficially owned
 by such person any securities

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| |       | acquired directly from the Company or its
 affiliates) representing 25% or more of the combined voting power of the
 Companys then outstanding securi­ties, excluding any person who becomes such
 a Beneficial Owner in connection with a transaction described in clause (A)
 of paragraph (iii) below; or                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (ii)  | the following individuals cease for any reason to
 consti­tute a majority of the number of directors then serving: individuals
 who, on December 15, 1998, constitute the board of directors of the Company
 (Board) and any new director (other than a director whose initial
 assumption of office is in connection with an actual or threatened election
 contest, includ­ing but not limited to a consent solicitation, relating to
 the election of directors of the Company) whose appointment or election by
 the Board or nomination for election by the Companys stockholders was
 approved or recommended by a vote of at least two-thirds (2/3) of the
 directors then still in office who either were directors on December 15, 1998
 or whose appointment, election or nomination for election was previously so
 approved or recom­mended; or                                                                                                                                                                                                                                                                                                                                      
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (iii) | there is consummated a merger or consolidation of
 the Company or any direct or indirect wholly owned subsidiary of the Company
 with any other corporation, other than (A) a merger or consolidation which
 would result in the voting securities of the Company outstanding immediately
 prior to such merger or consoli­dation continuing to represent (either by
 remaining outstanding or by being converted into voting securities of the
 surviving entity or any parent thereof), in combination with the ownership of
 any trustee or other fiduciary holding securities under an employee benefit
 plan of the Company or any subsidiary of the Company, at least 75% of the
 combined voting power of the securities of the Company or such surviving
 entity or any parent thereof outstanding immediately after such merger or
 consolidation, or (B) a merger or consolidation effected to implement a
 recapitalization of the Company (or similar transaction) in which no person
 is or becomes the Beneficial Owner, directly or indirectly, of securities of
 the Company representing 25% or more of the combined voting power of the
 Companys then outstanding securities; or
| |       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | (iv)  | the stockholders of the Company approve a plan of
 complete liquidation or dissolution of the Company or there is consummated an
 agreement for the sale or disposition by the Company of all or substantially
 all of the Companys assets, other than a sale or disposition by the Company
 of all or substantially all of the Companys assets to an entity, at least
 75% of the combined voting power of the voting securities of which are owned
 by stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

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| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
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| |  | of the Company in substantially the same proportions as their
 own­ership of the Company immediately prior to such sale.                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |  | Notwithstanding the foregoing subparagraphs (i),
 (ii), (iii) and (iv), a Change in Control shall not be deemed to have
 occurred by virtue of the consummation of any transaction or series of
 integrated transactions immediately following which the record holders of the
 common stock of the Company immediately prior to such transaction or series
 of transactions continue to have substantially the same proportionate
 ownership in an entity which owns all or substantially all of the assets of
 the Company immediately following such transaction or series of transactions.

| |     |                                                                                                      
| | --- | -----------------------------------------------------------------------------------------------------
| | (f) | Code
  The Internal Revenue Code of 1986, as amended.                                             
| |     |                                                                                                      
| | (g) | Committee
  The Employee Benefits Committee of the Company as selected by its Board of
 Directors.
| |     |                                                                                                      
| | (h) | Company
  Public Service Enterprise Group Incorporated.                                           
| |     |                                                                                                      
| | (i) | Compensation
                                                                                     

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | ---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i)  | For the purposes of calculating the Death Benefit
 pursuant to Paragraph 3 of the Plan, as to any Participant, Compensation
 shall be equal to the annual rate of salary of the Participant in effect at
 the date of death; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| |  | (ii) | For the purposes of calculating the Retirement
 Benefit pursuant to Paragraph 4 of the Plan, as to any Participant,
 Compensation shall be equal to the average of the total remuneration paid to
 such Participant for services rendered to the Company, excluding i) the
 Companys cost for any public or private employee benefit plan but including
 all elective contributions that are made by the Company on behalf of a
 Participant which are not includable in income under Code Sections 125 or
 401(k) and ii) all awards to the Participant under the Companys Long-Term
 Incentive Compensation Plan, for the five years ending at the earlier of such
 Participants date of Retirement or attainment of normal retirement age under
 the Pension Plan; provided, however, that for the purposes of Paragraph 4 of
 the Plan, Compensation with respect to any Participant who is also a
 participant in the Companys Management Incentive Compensation Plan or the PSEG
 Power LLC Incentive Compensation Program for PSEG Energy Resources and Trade
 LLC Employees shall not exceed the amount which is 150% of the average annual
 base salary of the Participant for the applicable five-year period.

| |     |                                                                            
| | --- | ---------------------------------------------------------------------------
| | (j) | ERISA
  The Employee Retirement Income Security Act of 1974, as amended.

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (k) | ERISA Affiliate  any organization
 which is a member of a controlled group of corporations (as defined in Code
 Section 414(b)) which includes the Company; or any trades or businesses
 (whether or not incorporated) which are under common control (as defined in
 Code Section 414(c), as modified by Code Section 415(h)) with the Company; or
 a member of an affiliated service group (as defined in Code Section 414(m))
 which includes the Company or any other entity required to be aggregated with
 the Company as required by regulations promulgated pursuant to Code Section
 414(o).
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (l) | Participant
  Each employee of the Company or an ERISA Affiliate nominated by the Chief
 Executive Officer of the Company and designated by the Companys Employee
 Benefits Policy Committee. The Chief Executive Officer of the Company shall
 nominate such select and key employees of the Company and its ERISA
 Affiliates upon such terms as he shall deem appropriate due to the employees
 responsibilities and opportunity to contribute substantially to the financial
 and operating objectives of the Company.                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (m) | Pension
 Plan  The Pension Plan of Public Service Enterprise
 Group Incorporated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (n) | Plan
  The Limited Supplemental Benefits Plan for Certain Employees of Public
 Service Enterprise Group Incorporated and its Subsidiaries, the terms of
 which are contained herein                                                                                                                                                                                                                                                                                                                                                                                                                  
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | (o) | Retirement
  For the purposes of the Plan, Retirement shall mean either (i) or (ii), as
 the case may be:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            

| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | ---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | (i)  | in the case of a Participant who participates in the
 Pension Plan, the Participant shall incur a Retirement for purposes of the
 Plan if he or she incurs a termination of service with the Company and its ERISA
 Affiliates after having attained the right to receive an immediately payable
 periodic benefit under the Pension Plan or when the sum of Participants age
 and service are equal to or exceed 80. In determining whether the Participant
 has attained the right to an immediately payable periodic benefit under the
 Pension Plan, he or she shall receive additional years of age and service in
 accordance with any employment, change in control, or similar arrangement
 applicable to the Participant, provided the Participant incurs a termination
 of service from the Company and its ERISA Affiliates during the two-year
 period commencing upon the date of a Change in Control.
| |  |      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| |  | (ii) | in the case of a Participant who participates in the
 Cash Balance Plan, the Participant shall incur a Retirement for purposes of
 the Plan if he or she incurs a termination of service with the Company and
 its ERISA Affiliates after his or her Early Retirement Date or Normal
 Retirement Date (as those terms are defined in the Cash Balance Plan). In
 determining whether the Participant has attained his or her Early Retirement
 Date or Normal                                                                                                                                                                                                                                                                                                                                                                                                                                                       

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| |  |  |                                                                                                                                                                                                                                                                                                                                                                             
| |  |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |  | Retirement Date, he or she shall receive additional
 years of age and service in accordance with any employment, change in
 control, or similar arrangement applicable to the Participant, provided the
 Participant incurs a termination of service from the Company and its ERISA
 Affiliates during the two-year period commencing upon the date of a Change in
 Control.
| |  |  |                                                                                                                                                                                                                                                                                                                                                                             
| |  |  | Retirement shall not include termination of service
 with the right to a deferred pension under the Pension Plan or a deferred
 retirement benefit or early commencement of payment of a participants Cash
 Balance Account under the Cash Balance Plan.                                                                                                                   

|   |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 
|-- | ------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | 
|   | (p)                 | Retirement
 Plan  Any pension plan within the meaning of ERISA,
 excluding (i) the Pension Plan, the Cash Balance Plan and all defined
 contribution plans maintained by the Company or an ERISA Affiliate, except
 insofar as any such defined contribution plan may provide supplementary
 benefits to the Pension Plan or the Cash Balance Plan, (ii) this Plan and
 (iii) all deferred compensation plans, tax credit employee stock ownership
 plans and thrift plans, and all other profit-sharing plans which are not the
 principal retirement benefit of a plan sponsor, maintained by sponsors other
 than the Company.
|   |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | (q)                 | Voting
 Stock  Outstanding stock of a corporation entitled to
 vote in the election of the directors of that corporation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|3. | DEATH
 BENEFIT.    
|   |                    
|   | (a)                 | Amount
 of Benefit  If a Participant dies while in the active
 employment of the Company or an ERISA Affiliate, the Company shall provide a
 death benefit to such Participants Beneficiary in an amount equal to 150% of
 the Participants Compensation, adjusted to the nearest $1,000, or to the
 next highest $1,000 if such Compensation is a multiple of $500 but not of
 $1,000.                                                                                                                                                                                                                                          
|   |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|   | (b)                 | Establishment
 of Account  Upon the death of a Participant during
 employment with the Company or an ERISA Affiliate, the Company shall
 establish an Account for the benefit of such Participants Beneficiary. Such
 Account shall initially be credited with an amount equal to the benefit
 provided under Paragraph 3(a) and shall be held and administered as provided
 in Paragraph 5 of the Plan.                                                                                                                                                                                                                          
|   |                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|4. | RETIREMENT BENEFIT.
|   |                    
|   | (a)                 | General
  At Retirement, the Company shall provide each Participant with a
 retirement benefit calculated as provided in this Paragraph 4.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

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| |     |                             | 
| | --- | --------------------------- | 
| | (b) | Determination
 of Benefit 

| |  |     |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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| |  | (i) | Pension Plan Participants:
| |  |     |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  |     | (A)                        | The Participants Compensation shall be multiplied
 by an amount equal to one one-hundredth of the sum of (x) the number of the
 Participants years of credited service under the Pension Plan at Retirement
 (including any additional years of age and service provided to the
 Participant in accordance with any employment, change in control, or similar
 arrangement applicable to the Participant so long as the Participant incurs a
 termination of service from the Company and its ERISA Affiliates during the two-year
 period commencing upon the date of a Change in Control), (y) the number of any
 additional years of service credit to which the Participant may be entitled
 from the Company under the Mid-Career Supplemental Retirement Income Plan of
 Public Service Enterprise Group Incorporated and its Affiliates or any
 written arrangement with the Company or an ERISA Affiliate Company (excluding
 any written arrangement between the Company or ERISA Affiliate and the
 Participant relating to a Change in Control), and (z) 30; but, in no event,
 shall the multiple be greater than 0.75.                                                                                                                                                                                                                                                                                                                                                                                                        
| |  |     |                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |  |     | (B)                        | The amount determined under subparagraph (A) of this
 Paragraph 4(b)(i) shall be reduced by the sum of (x) the amount the
 Participant would be entitled to at Retirement as an annual pension benefit
 under the Pension Plan and any supplemental retirement plan (other than this
 Plan) maintained by the Company or an ERISA Affiliate calculated as a single
 life annuity without reduction for any pre-retirement survivors option
 coverage or any reduction for early retirement, (y) 100% of the amount of
 the unreduced annual Social Security benefit to which the Participant would
 be entitled at age 65 (or such other age which may be established by the
 Social Security Administration from time to time as the earliest age at which
 a Participant may receive an unreduced benefit thereunder), assuming that the
 Participant has no earnings from the date of Retirement to age 65 (or such
 other applicable age), or, if greater, any disability benefit under Social
 Security to which the Participant may be entitled, and(z) the aggregate of the
 annual benefits to which the Participant is entitled under all Retirement
 Plans as of the date the Participant is employed by the Company or an ERISA
 Affiliate, the such Social Security Benefits and benefits under all
 Retirement Plans to be calculated as single life annuities without any
 reductions, under rules, procedures and equivalents determined by the
 Committee. To determine the amounts referred to under (y) and (z) above, the

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| |  |      |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | ---- | ------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  |      |                                 | Participant shall file a declaration of all such
 amounts with the Performance and Rewards Department of the Companys
 subsidiary, PSEG Services Corporation, in such form as the Committee may
 require from time to time. No benefit shall be paid under the Plan until such
 a declaration, in satisfactory form, shall be filed with the Performance and
 Rewards Department. If a Participant is granted a disability Social Security
 benefit, he shall notify the Performance and Rewards Department thereof
 within 30 days thereof, and the Participants retirement benefit under this
 Plan shall be adjusted accordingly. The Company shall be entitled to rely on
 such statements in making payment, and if any such statement is incorrect or
 is not furnished, the Company shall be entitled to reimbursement from the
 Participant, the Beneficiary or their legal representatives for any
 overpayment and may reduce or suspend future payments to recover any such
 overpayment. In the event it is established to the satisfaction of the
 Committee, in its sole discretion, that any such statement was intentionally
 false or omitted, the Participant or Beneficiary shall be entitled to no
 further payments under the Plan, and the Company shall be entitled to recover
 any payments made hereunder.
| |  |      |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  | (ii) | Cash Balance Plan Participants:
| |  |      |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |      | (A)                             | The Participants Compensation shall be multiplied
 by an amount equal to one one-hundredth of the sum of (x) the number of the
 Participants years of service under the Pension Plan with which such
 Participant would have been credited at Retirement had the Participant
 participated in the Pension Plan from his/her date of hire and including any
 additional years of age and service provided to the participant in accordance
 with any employment, change in control, or similar arrangement applicable to
 the Participant so long as the Participant incurs a termination of service
 from the Company and its ERISA Affiliates during the two-year period
 commencing upon the date of a Change in Control, (y) the number of any
 additional years of service credit to which the Participant may be entitled
 from the Company under the Mid-Career Supplemental Retirement Income Plan of
 Public Service Enterprise Group Incorporated and its Affiliates or any written
 arrangement with the Company or an ERISA Affiliate (excluding any written
 arrangement between the Company or ERISA Affiliate relating to a Change in
 Control) the , and (z) 30; but, in no event, shall the
 multiple be greater than 0.75.                                                                                        
| |  |      |                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |  |      | (B)                             | The amount determined under subparagraph (A) of this
 Paragraph 4(b)(ii) shall be reduced by the sum of (x) the amount the
 Participant would be entitled to at Retirement as an annual                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | pension benefit under the Cash Balance Plan and any
 supplemental retirement plan (other than this Plan) maintained by the Company
 or an ERISA Affiliate the calculated as a single life annuity payable at the
 Participants Normal Retirement Date (as defined under the Cash Balance Plan),
 (y)
 100% of the amount of the unreduced annual Social Security benefit to which
 the Participant would be entitled at age 65 (or such other age which may be
 established by the Social Security Administration from time to time as the
 earliest age at which a Participant may receive an unreduced benefit
 thereunder), assuming that the Participant has no earnings from the date of
 Retirement to age 65 (or such other applicable age), or, if greater, any
 disability benefit under Social Security to which the Participant may be
 entitled, and(z) the aggregate of the annual benefits to which the
 Participant is entitled under all Retirement Plans as of the date the
 Participant is employed by the Company or an ERISA Affiliate, such Social
 Security Benefits and benefits under all Retirement Plans to be calculated as
 single life annuities without any reductions, under rules, procedures and
 equivalents determined by the Committee. To determine the amounts referred to
 under (y) and (z) above, the Participant shall file a declaration of all such
 amounts with the Performance and Rewards Department in such form as the
 Committee may require from time to time. No benefit shall be paid under the
 Plan until such a declaration, in satisfactory form, shall be filed with the
 Performance and Rewards Department. If a Participant is granted a disability
 Social Security benefit, he shall notify the Performance and Rewards
 Department thereof within 30 days thereof, and the Participants retirement
 benefit under this Plan shall be adjusted accordingly. The Company shall be
 entitled to rely on such statements in making payment, and if any such
 statement is incorrect or is not furnished, the Company shall be entitled to
 reimbursement from the Participant, the Beneficiary or their legal
 representatives for any overpayment and may reduce or suspend future payments
 to recover any such overpayment. In the event it is established to the
 satisfaction of the Committee, in its sole discretion, that any such
 statement was intentionally false or omitted, the Participant or Beneficiary
 shall be entitled to no further payments under the Plan, and the Company
 shall be entitled to recover any payments made hereunder.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | (c) | Forms
 of Benefit  The annual amount determined under
 paragraph (b) of this Paragraph 4 shall be paid in the form of a life
 annuity; either a single life annuity in monthly installments or a joint and
 survivor annuity in monthly installments based upon such annual amount and
 calculated in accordance with the form of benefit option selected by the
 Participant; provided, however, that if the Participant has selected a
 lump-sum distribution under the Pension Plan or the

- 8 -

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| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     | Cash Balance Plan, distribution under this Plan
 shall be made in the form of a single life annuity.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| |     | Provided, further, that
 that if the vested Plan benefit of a participant or beneficiary, as presently
 valued at the time of commencement of the payment of such benefit, does not
 exceed $10,000, such person shall be paid a lump sum distribution of the
 actuarial equivalent of his/her vested plan benefit (in determining the
 amount of a lump sum distribution under this Plan, actuarial equivalence
 shall be determined by using the Applicable Mortality Table and the
 Applicable Interest Rate as those terms are defined in Section 1 of the Pension
 Plan of Public Service Enterprise Group Incorporated as then in effect).
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | (d) | Commencement
 of Benefit The benefit to be paid pursuant to this
 Paragraph 4 shall commence at the same time as the Participants benefit
 under the Pension Plan or Cash Balance Plan except that for any Participant
 who is a Key Employee, as defined in the Code, commencement of his/her
 benefit may not occur earlier than six months following his/her Retirement.                                                                                                                                                                                                                                                                 

|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | ---------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|5. | ADMINISTRATION
 OF ACCOUNTS.
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                          | General
  Accounts shall be established under the Plan only pursuant to Paragraph
 3(b) hereof. All Accounts shall be administered in accordance with the
 provisions of this Paragraph 5.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                          | Interest
 on Assets in the Account  The Assets credited to an
 Account shall accrue interest at a market rate of interest as may be
 determined from time to time by the Committee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (c)                          | Timing
 of the Distribution(s)  A Beneficiary shall receive
 the distribution of the Account in the form of monthly distributions over a
 ten-year period commencing in the month following the month of the
 Participants death. The amount of each installment shall be determined by
 dividing the then unpaid balance in the Account, including accrued and unpaid
 interest, by the number of installments remaining to be paid.                                                                                                                                                                                                                                                                                                                                                                               
|   |                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (d)                          | Request
 for Change in Distribution  A Beneficiary or legal
 representative may request a change in the timing, frequency or amount of
 payments made from a Account by filing a written request therefor with the
 Committee. The Committee may, in its sole discretion, grant such request only
 if the Committee determines that an emergency beyond the control of the
 Beneficiary or legal representative exists and which would cause such
 Beneficiary or legal representative severe financial hardship if the payment
 of such benefits were not approved. Any such distribution for hardship shall
 be limited to the amount needed to meet such emergency. The Committee shall
 inform the Beneficiary or legal representative of its decision within sixty
 (60) days of receipt of the written request.

- 9 -

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|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|-- | ----------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|6. | DESIGNATION
 OF BENEFICIARIES
|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (a)                           | General
  To designate an individual(s) and/or entity(ies) to receive the benefits
 of the Plan with respect to a Participant, such Participant must file a
 written designation in the form of Schedule A to the Plan with the Committee.
 Subject to the restrictions of this Paragraph 6, a Participant may change
 such designation by filing a subsequent written designation.                                                                                                                                                                                                                                                                                                        
|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (b)                           | Death
 Benefit  By designation on Section 1 of a Schedule A
 filed with the Committee, a Participant may name an individual(s) and/or
 entity(ies) to receive a death benefit under Paragraph 3 of the Plan with
 respect to such Participant. A Participant may change such designation by filing
 a subsequent notification in the form of Schedule A.                                                                                                                                                                                                                                                                                                                                   
|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (c)                           | Retirement
 Benefits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                               | (i)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Single
 Life Annuity. If a Participants retirement benefit
 under the Plan is paid as a single life annuity under Paragraph 4(c)(i) of
 the Plan, there shall be no Beneficiary with respect to such benefit and all
 retirement benefits shall cease upon the Participants death.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   |                               | (ii)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Joint
 and Survivor Annuity. If a Participants retirement
 benefit under Paragraph 4(c)(ii) of the Plan is paid as joint and survivor
 annuity, the post-retirement survivorship shall be paid to the Participants
 spouse. If the Participants spouse predeceases the Participant within five
 years from the date of Participants Retirement, the Participants retirement
 benefit hereunder will automatically revert and return to a single life
 annuity commencing the first day of the month following the month in which
 the spouse died. If, however, the spouse predeceases the Participant more
 than five years after Participants Retirement, the Participants reduced
 retirement benefit shall continue during his life and no survivor benefit
 shall be paid.
|   |                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   | (d)                           | Designation
 by Last Remaining Beneficiary  After a Participants
 death, if there is only one remaining Beneficiary with respect to a death
 benefit under Paragraph 3 of the Plan, such Beneficiary shall be entitled to
 designate in writing to the Committee an individual to be paid any remainder
 of such benefit under the Plan at such Beneficiarys death. If no such
 further designation is made, such remainder shall be paid to such
 Beneficiarys estate. In the event of such Beneficiarys death, and
 regardless of whether any such further designation has been made, the
 Committee in its sole discretion may require any such remainder to be paid as
 a lump sum.

- 10 -

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|   |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|-- | ------------------------ | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|7. | LIMITATION
 OF BENEFITS.
|   |                         
|   | (a)                      | The Plan shall be unfunded with respect to all
 benefits to be paid hereunder. In addition, the Company shall not be required
 to segregate any amounts credited to any Account, which shall be established
 merely as an accounting convenience; title to and beneficial ownership of any
 Assets credited to any Account shall at all times remain in the Company, and
 no Participant, Beneficiary or legal representative shall have any interest
 whatsoever in any specific assets of the Company.
|   |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (b)                      | The payment of any death or survivorship benefit
 under this Plan shall be contingent upon such evidence of death as may be
 required by the Committee.                                                                                                                                                                                                                                                                                                                                                 
|   |                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   | (c)                      | If the Company should terminate the Plan pursuant to
 Paragraph 9 hereof, the Companys obligation to pay any benefits under the
 Plan shall likewise terminate; provided, however, that, except as otherwise
 provided in said Paragraph 9, the Company may not terminate the Plan with
 respect to any Participant subsequent to that Participants Retirement or
 death.                                                                                                                             

|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|8.  | PLAN
 DOES NOT CONSTITUTE AN EMPLOYMENT AGREEMENT. The Plan
 shall not constitute a contract for the continued employment of any
 Participant by the Company or any ERISA Affiliate. The Company and each ERISA
 Affiliate reserves the right to modify a Participants Compensation at any
 time and from time to time as it considers appropriate and to terminate any
 Participants employment for any reason at any time notwithstanding the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|9.  | AMENDMENT
 OR TERMINATION OF THE PLAN. The Board of Directors of
 the Company may, in its sole discretion, amend, modify or terminate the Plan
 at any time, provided, however, that no such amendment, modification or
 termination shall deprive any Participant or Beneficiary of a previously
 acquired right unless such Participant or his Beneficiary or his legal
 representative shall consent to such change. Provided, further, however, that
 after a Change in Control, this Plan may not be terminated nor the benefit
 calculation reduced with respect to any Participant in the Plan on the date
 of such Change in Control unless such Participant or his Beneficiary or his
 legal representative shall consent to such change. No right to a death
 benefit under the Plan shall accrue until a Participants death and no right
 to a retirement benefit shall accrue until a Participants Retirement.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|10. | WHAT
 CONSTITUTES NOTICE. Any notice to a Participant, a
 Beneficiary or any legal representative hereunder shall be given in writing,
 by personal delivery, overnight express service or by United States mail,
 postage prepaid, addressed to such persons last known address. Any notice to
 the Company or the Committee hereunder (including the filing of Schedule A)
 shall be given by delivering it in person or by overnight express service, or
 depositing it in the United States mail, postage prepaid, to the Secretary of
 the Employee Benefits Committee, Public Service Enterprise Group
 Incorporated, 80 Park Plaza, T10B, P.O. Box 1171, Newark, New Jersey, 07101.                                                                                                                                                                                                                                 

- 11 -

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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|11. | ADVANCE
 DISCLAIMER OF WAIVER. Failure by the Company or the
 Committee to insist upon strict compliance with any of the terms, covenants
 or conditions hereof shall not be deemed a waiver of any such term, covenant
 or condition, nor shall any waiver or relinquishment of any right or power
 hereunder at any one or more times be deemed a waiver or relinquishment of
 any such right or power at any other time or times.                                                                                                                                                                                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|12. | EFFECT
 OF INVALIDITY OF ANY PART OF THE PLAN. The invalidity
 or unenforceability of any provision hereof shall in no way affect the
 validity or enforceability of any other provision of the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|13. | PLAN
 BINDING ON ANY SUCCESSOR. Except as otherwise provided
 herein, the Plan shall inure to the benefit of and be binding upon the
 Company, its successors and assigns, including but not limited to any
 corporation which may acquire all or substantially all of the Companys
 assets and business or with or into which the Company may be consolidated or
 merged.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|14. | FUNCTION
 OF THE COMMITTEE. The Plan shall be administered by the
 Committee and the Committee shall be the final arbiter of any question that
 may arise under the Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|15. | LAW
 GOVERNING THE PLAN. Except to the extent federal law
 applies, the Plan shall be governed by the laws of the State of New Jersey
 without giving effect to principles of conflicts of law. This Plan is specifically intended to
 comply with the provisions of the American Jobs Creation Act of 2004 (the
 AJCA) and Section 409A of the Code and it shall automatically incorporate all applicable
 restrictions of the AJCA, the Code and its related regulations, and the
 Company will amend the Plan to the extent necessary to comply with those
 requirements. The timing under which a Participant will have a right to
 receive any payment under this Plan will be deemed to be automatically
 modified, and a Participants rights under the Plan limited to conform to any
 requirements under, the AJCA, the Code and its related regulations.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|16. | MISCELLANEOUS.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

| |     |                                                                                                                                                      
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The masculine pronoun shall mean the feminine
 wherever appropriate.                                                                                 
|
| | (b) | The headings are for convenience only. In the event
 of a conflict between the headings of a paragraph and its contents, the
 contents shall control.

- 12 -

---



LIMITED
SUPPLEMENTAL BENEFITS PLAN
FOR CERTAIN EMPLOYEES OFPUBLIC SERVICE ENTERPRISE GROUP INCORPORATEDAND ITS SUBSIDIARIES

SCHEDULE
A

|           |                                                                                
|---------- | -------------------------------------------------------------------------------
|Section 1. | DESIGNATION OF BENEFICIARY(IES) FOR
 DEATH AND 10-YEAR CERTAIN ANNUITY BENEFITS

In the event of my death, I hereby designate the
following individuals, fiduciaries or other entities, either in their own right
or in their representative capacity, in the proportions and in the priority of
interest designated, to be the beneficiaries of any death benefits owing to me under
Paragraph 3 or 4, and any 10-year certain annuity retirement benefits owing to
me under Paragraphs 5(c)(iii) and (iv), of the Limited Supplemental Death
Benefits and Retirement Plan of Public Service Electric and Gas Company (Plan).

PRIMARY BENEFICIARIES
-The following beneficiary(ies) shall receive all such benefits payable under
the Plan in the event of my death in the proportions designated
hereunder. If any one or more of the primary beneficiaries designated hereunder
shall predecease me, such beneficiarys share(s) shall be divided equally among
the remaining primary beneficiaries.

| |                     
| | --------------------
| |                     
| | Employees Signature

Page 1 of 3  Schedule A

---



Section 1 (Continued)

|                                                 |  |                                                       |  |                            |  | 
|------------------------------------------------ |  | ----------------------------------------------------- |  | -------------------------- |  | 
|NAME
 AND PRESENT ADDRESS
 PRIMARY BENEFICIARIES |  | PROPORTIONATE
 INTEREST OF PRIMARY
 BENEFICIARY (IES) |  | RELATIONSHIP
 TO
 EMPLOYEE
|                                                 |  |                                                       |  |                           
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  | %                          |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  | %                          |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  |                            |  | 
|                                                 |  |                                                       |  | %                          |  | 

SECONDARY BENEFICIARIES
-The following beneficiary(ies) shall receive all such benefits payable under
the Plan in the event of my death in proportions designated hereunder only
if all of my primary beneficiaries have predeceased me. If all primary
beneficiaries have predeceased me and if any one or more of the secondary
beneficiaries designated hereunder shall predecease me, such secondary
beneficiarys share(s) shall be divided equally among the remaining secondary
beneficiaries.

|                                                   |  |                                                         |  |                            |  | 
|-------------------------------------------------- |  | ------------------------------------------------------- |  | -------------------------- |  | 
|NAME
 AND PRESENT ADDRESS
 SECONDARY BENEFICIARIES |  | PROPORTIONATE
 INTEREST OF SECONDARY
 BENEFICIARY (IES) |  | RELATIONSHIP
 TO
 EMPLOYEE
|                                                   |  |                                                         |  |                           
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  | %                          |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  | %                          |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  |                            |  | 
|                                                   |  |                                                         |  | %                          |  | 

| |                     
| | --------------------
| |                     
| | Employees Signature

Page 2 of 3  Schedule A

---



Section 1 (Continued)

ESTATE - In the
event I have declined to designate a beneficiary under this Section 1 with
respect to any such benefits payable under the Plan, or if all of the
beneficiaries that I have designated predecease me, then all such benefits
payable under the Plan shall be payable to my estate.

|           |                                                            
|---------- | -----------------------------------------------------------
|Section 2. | DESIGNATION OF BENEFICIARY FOR
 JOINT AND SURVIVOR ANNUITY.

In the event of my death, if I am not paid a joint and survivor annuity
under the Pension Plan of Public Service Electric and Gas Company, I hereby
designate the following individual to be the beneficiary with respect to any
joint and survivor annuity paid to me under Paragraph 5(c) (ii) of the Plan. If
I am paid a joint and survivor annuity under the Pension Plan, I understand my
beneficiary for a survivor benefit under Paragraph 5(c)(ii) of the Plan will be
the same as under the Pension Plan.

| |          |  | 
| | -------- |  | 
| | Name:    | 
| |          | 
| |          | 
| | Address: | 
| |          | 
| |          | 
| |          | 

| |                            | 
| | -------------------------- | 
| | Relationship
 to Employee: | 
| |                            | 
| |                            | 
| | Date of Birth:             | 
| |                            | 

|        |  |                      | 
|------- |  | -------------------- | 
|Date:   |  |                      | 
|        |  |                      | 
|        |  |                      | 
|        |  |                     
|WITNESS |  | EMPLOYEES SIGNATURE

Page 3 of 3  Schedule A

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