PSEG Power LLC's (Power) corporate credit rating is based on the consolidated credit profile of parent Public Service Enterprise Group Inc. (Enterprise; BBB/Stable/A-2), a diversified energy company based in Newark, N.J. The outlook is stable. Enterprise's rating reflects its unregulated operations that are volatile, but currently generate strong cash flow. This results in an improvement in the group's consolidated financial profile and liquidity. Enterprise's business risk profile is strong and is driven by Power's exposure to merchant power, offset by the excellent regulated utility operations at Public Service Electricity&Gas Co. (PSE&G). Strengths include Power's well-positioned base load generation assets that currently benefit from tightening reserve margins in the PJM region. We also expect Power's large base load fleet
