Summary: West Penn Power Co.

Standard&Poor's Ratings Services bases the corporate credit rating on West Penn Power Co. (WPP) on a consolidated analysis of parent FirstEnergy Corp., a merchant energy and electricity utility holding company. WPP operates an electricity transmission and distribution (T&D) utility in southwestern, south-central, and northern Pennsylvania. We also base the ratings on the parent company's transformation from an integrated electric utility holding company to a business model that encompasses regulated electricity T&D operations and unregulated merchant electricity generation and marketing activities in equal measure. While we no longer consider the company fully integrated, we regard the two segments as equally important to the company. The utilities and the generating plants that were formerly rate-based assets retain a strategic connection.

...Standard & Poor's Ratings Services bases the corporate credit rating on West Penn Power Co. (WPP) on a consolidated analysis of parent FirstEnergy Corp., a merchant energy and electricity utility holding company. WPP operates an electricity transmission and distribution (T&D) utility in southwestern, south-central, and northern Pennsylvania. We also base the ratings on the parent company's transformation from an integrated electric utility holding company to a business model that encompasses regulated electricity T&D operations and unregulated merchant electricity generation and marketing activities in equal measure. While we no longer consider the company fully integrated, we regard the two segments as equally important to the company. The utilities and the generating plants that were formerly rate-based assets retain a strategic connection. FirstEnergy's merger this year with Allegheny Energy Inc. has resulted in a slightly weaker business risk profile and could slow efforts to strengthen...

Summary