The 'BBB' corporate credit ratings on Public Service Enterprise Group Inc. (Enterprise), PSEG Power LLC, and Public Service Electric&Gas Co. (PSE&G) are on CreditWatch with developing implications to reflect the potential benefits that might be realized from a merger with Exelon Corp. as well as the credit risks tied to significant operational challenges. 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 $10.8 billion in outstanding long and short-term recourse 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 by mid-2006,
