Fully rate-regulated electric transmission businesses. Supportive regulation that includes formula rates, annual true-ups, and above-average returns on equity. The transmission business represents one of the key growth areas for parent FirstEnergy Corp. Lack of business diversity. Use of the low volatility table based on a low-risk regulated business model and supportive regulation. Core financial measures that are consistent with the intermediate financial risk profile category. Capital spending at about $500 million annually. The negative outlook on American Transmission System Inc. (ATSI) reflects the increased probability that we could downgrade parent FirstEnergy Corp. and its subsidiaries one notch within the next 12 to 18 months. This incorporates the minimal cushion at the current rating level and the potential for weaker financial
