This report does not constitute a rating action. Overview Key strengths Key risks Low-risk and monopolistic rate-regulated electric transmission operations in PJM. Forecast for negative discretionary cash flow (DCF) that indicates external funding needs. Regulation under the credit-supportive Federal Energy Regulatory Commission (FERC) construct, which supports timely recovery of costs. Service territory that is susceptible to severe weather, including winter storms. Expected load growth over the near and intermediate-terms from data centers within its service territory. This reflects the company's essential, electric transmission operations under a credit-supportive FERC regulatory framework. Our analysis of the insulating measures incorporates the following: FET is a separate legal entity with its own capital structure, maintains its own records, and does not commingle funds, assets,
