American Transmission Systems Inc. (ATSI) is a low-risk, fully rate-regulated electric transmission utility. Supportive regulation by the Federal Energy Regulatory Commission (FERC) includes formula rates and annual true-ups, and results in above-average return on equity. The transmission business represents a key growth area for parent FirstEnergy Corp. Lack of business diversity. We assess the financial measures against our most relaxed benchmarks, reflecting ATSI's low-risk, regulated transmission business and effective management of regulatory risk. Financial measures that are consistent with the company's current financial risk profile category. Capital spending averages about $400 million annually. Negative discretionary cash flow over the next few years. S&P Global Ratings' stable outlook on American Transmission Systems Inc. (ATSI) reflects the reduced probability of further downside
