The ratings on Exelon Generation Co. LLC reflect the consolidated credit quality of parent Exelon Corp., a diversified energy company. The ratings on Exelon 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 Dec. 31, 2005, Chicago, Ill.-based Exelon had $10.5 billion of debt outstanding. The regulatory climate in Illinois has 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. Heightening this concern is the new legislation introduced on Feb. 24, 2006, that could, if
