The ratings on West Penn Power Co. reflect the consolidated credit profile of its parent, Allegheny Energy Inc., whose credit profile is determined in conjunction with that of its unregulated subsidiary, Allegheny Energy Supply Co. LLC (AE Supply) and its regulated utility subsidiaries, Monongahela Power Co., Potomac Edison Co., and West Penn. Even though West Penn's stand-alone credit quality is substantially stronger than those of the consolidated entity, Standard&Poor's views the default risk of West Penn as being the same as that of Allegheny Energy because the company manages its cash flow as a consolidated entity. Cash can and does flow freely within the corporate entities whereby one subsidiary's cash surplus supports another subsidiary's expenditure if necessary. West
