Domestic unregulated generation owned by PSEG Power LLC benefits from proximity to load. A substantial portion of PSEG Power's unregulated generation continues to benefit from transmission constraints within the PJM region. Regulated electricity and gas operations contribute meaningfully to consolidated cash flow. The separation of the debt and cash flows associated with PSEG Energy Holdings from the debt and cash flows of its affiliate companies results in a sound consolidated financial profile. Dependence upon a sizable merchant generation portfolio to support debt. Some problematic domestic generation investments. Several failed foreign generation and distribution investments. On Aug. 28, 2003, Standard&Poor's Ratings Services affirmed its 'BBB' corporate credit rating on Newark, N.J.-based utilities holding company Public Service Enterprise Group Inc.
