The corporate credit rating and strong business risk profile of New Jersey-based energy supply company PSEG Power LLC (PSEG Power) reflects parent Public Service Enterprise Group Inc.'s (PSEG Inc.) consolidated credit risk profile. PSEG Inc.'s credit risk is a blend of PSEG Power's exposure to merchant power, offset by the regulated operations of utility subsidiary Public Service Electric&Gas Co. (PSE&G), which we categorize as having an excellent business risk profile. PSE&G's operations are becoming a larger portion of the consolidated company's cash flow, which has become an increasingly important factor for credit quality, presenting the prospect of higher ratings over the next two years. Unregulated operations, while volatile, provided strong cash flows through 2010 into 2011, which has
