Consistent hedging strategy, with a significant proportion of gross margin under contract through 2017 Strong operational performance by a somewhat diversified set of generation assets Environmentally well positioned due to substantial regulatory-compliance spending Exposure to market price volatility as contracts expire and are renewed at prevailing market prices Consolidated credit measures (at parent Public Service Enterprise Group Inc. [PSEG] level) that are strong, including adjusted funds from operations (FFO) to debt expectations at about 25% through 2017 Resilient financial performance despite strong downward pressure on power margins An elevated capital spending program by the affiliated regulated utility that is likely to be sustained for the next several years The stable outlook on PSEG Power LLC (Power) mirrors that of parent
