The 'BBB' corporate credit ratings on PSEG Power LLC, parent Public Service Enterprise Group Inc. (Enterprise), and Public Service Electric&Gas Co. (PSE&G) are on CreditWatch with developing implications because Exelon Corp. and Enterprise announced in December 2004 that they plan to merge. The rating on Enterprise's PSEG Energy Holdings LLC subsidiary is 'BB-' with a negative outlook. PSEG Energy Holdings is rated on a stand-alone basis. Newark, N.J.-based Enterprise has about $10.7 billion in outstanding long and short-term debt, net of stranded-cost securitization bonds. The CreditWatch listing with developing implications reflects the divergent credit paths facing the Enterprise companies. If the merger is consummated in 2006, as projected, the credit quality of Enterprise and its subsidiaries should benefit
