The ratings on power generation company Exelon Generation Co. LLC, a unit of Exelon Corp., are on CreditWatch with negative implications. The ratings on parent Exelon Corp., a diversified energy company, and its affiliates are on CreditWatch with negative implications pending the completion of the merger with Public Service Enterprise Group Inc. (BBB/Watch Dev/A-3). As of June 30, 2005, the Chicago, Ill.-based company had $10 billion of debt outstanding. The regulatory climate in Illinois has suddenly become exceptionally politicized and uncertain and may lead to debilitating rate decisions should a constructive settlement that allows for the timely recovery of all costs of providing service not be achieved before the rate freeze expires in 2007. The Illinois governor publicly denounced the
