The ratings on unregulated supply company, PSEG Power LLC, reflect the ratings on parent Public Service Enterprise Group, Inc. (Enterprise). The ratings on Enterprise reflect unregulated operations that are volatile, but currently generating adequate cash flow, resulting in an improvement in the group's consolidated financial profile. Enterprise's business risk profile is strong and is driven by supply subsidiary PSEG Power LLC's (Power) exposure to merchant power offset by Public Service Electric&Gas Co.'s (PSE&G) excellent regulated utility operations. Given the ring-fencing provisions in place, we analyze subsidiary PSEG Energy Holdings LLC (Holdings; BB-/Stable/B-2) as an equity investment. Strengths include Power's well-positioned base load electricity generation assets that benefit from tightening reserve margins in the PJM region. We also expect
