...- After a strong performance in 2023, we model stable cash flow from operations over the next few years, supported by production tax credits (PTCs) under the Inflation Reduction Act of 2022 (IRA). - PTCs set a price floor per megawatt hour (MWh) on PSEG Power's energy generation, which is above the company's hedged power prices in 2024, leading to favorable operating cash flows which we view as a credit positive. - We expect the PSEG Power financial risk profile will remain within the range of our expectations. - Therefore, S&P Global Ratings affirmed its '###' issuer credit rating on PSEG Power LLC. - The stable rating outlook on PSEG Power reflects our view that the company will generate predictable and stable cash flow following the introduction of PTCs for nuclear power plants beginning 2024 through 2032. We expect PSEG power to maintain funds from operation (FFO) to debt above 30% and debt to EBITDA about 2.5x, and free operating cash flow to debt between 10% and 15%. Our stable outlook...
