On Aug. 10, 2006, Standard&Poor's Ratings Services assigned its 'BBB' rating to West Penn Power Co.'s (West Penn) $145 million first mortgage bond offering. At the same time, Standard&Poor's assigned a '1+' recovery rating on the first mortgage bonds reflecting our highest expectation of full recovery of principal (100% recovery) in a default scenario. Proceeds from the issuance will be used to partly repay a note payable ($162 million) that the company borrowed from the consolidated money pool, and for general corporate purposes, including dividend to its parent, Allegheny Energy Inc. (Allegheny; BB+/Positive/B-2). The two-notch differential over the utility's corporate credit rating of 'BB+' reflects the overcollateralization of first mortgage bonds by utility property at West
