In 2000, Public Service Enterprise Group split off the PSE&G subsidiary's unregulated national power generation assets to form PSEG Power, while the PSE&G subsidiary continued operating in New Jersey as a regulated gas and electric delivery company.

[6] In June 2005, the acquisition of PSEG by Exelon, a Chicago and Philadelphia based utility conglomerate, was approved by the Federal Energy Regulatory Commission; however, the deal was never consummated and eventually dissolved after it became clear that it would not win state regulatory approval from the New Jersey Board of Public Utilities.

Governor Andrew Cuomo[16] threatened to take away operating licenses from PSEG and ConEdison, while Nassau County Executive Laura Curran along with several state senators called for reimbursement to customers for their failure to respond quickly.

[17] Public Service Enterprise Group has three operating subsidiaries:[21] PSE&G serves the population in an area consisting of a 2,600-square-mile (6,700 km2) diagonal corridor across the state from Bergen to Gloucester Counties.

[25] Exelon also operates two reactors at Peach Bottom Nuclear Generating Station in a 50/50 joint venture with PSEG.

[26] PSEG Long Island provides electricity to 1.1 million customers in Nassau and Suffolk counties, and the Rockaway Peninsula of Queens, part of New York City.

[28] PSEG was selected to essentially privatize LIPA after the controversies surrounding Hurricane Sandy, taking over near complete control of the system including its brand name, whereas before this agreement only a number of functions were performed by the private sector and the system was operated under the LIPA name.