The 'BBB' corporate credit rating on Newark, N.J.-based utility holding company Public Service Enterprise Group Inc. (Enterprise) and its subsidiaries, wholly owned regulated utility Public Service Electric&Gas Co. (PSE&G) and domestic merchant energy provider PSEG Power LLC, reflects the consolidated financial and credit profiles of these three entities. PSE&G's senior secured debt is rated 'A-', which is above the corporate credit rating, to reflect the benefits of the utility's assets that are pledged as collateral to support the debt. The utility is expected to produce strong and stable cash flows. Although PSEG Power's cash flows exceed the utility's cash flows, PSEG Power's unregulated operations and its financial performance are susceptible to changes in electric demand, fuel prices, and
