Regulated electricity and gas operations contribute meaningfully to consolidated cash flow, Domestic unregulated generation owned by PSEG Power LLC benefits from proximity to load, The separation of PSEG Energy Holdings LLC's debt and cash flows from its affiliate companies' debt and cash flows results in a sound consolidated financial profile, and The proposed merger with Exelon Corp. could enhance operational performance and credit quality. Dependence upon a sizable merchant generation portfolio to support debt, PSEG Power's nuclear fleet has been plagued with operational problems that have impaired financial performance and are likely to continue to have negative implications in 2005, PSEG Energy Holdings' financial performance reflects several failed or struggling foreign and domestic generation and distribution investments, and The IRS
