Standard&Poor's Ratings Services' ratings on West Penn Power Co. (WPP) reflect the consolidated credit profile of parent FirstEnergy Corp. The ratings also reflect WPP's "excellent" business risk profile and FirstEnergy's "aggressive" financial risk profile (as our criteria define the terms). WPP is a transmission and distribution electric utility serving about 700,000 customers in southwestern, south-central, and northern Pennsylvania. WPP's excellent business risk profile reflects its rate-regulated, monopolistic, and essential service. We view the transmission and distribution operations as lower risk than the regulated generation business that is included in many fully integrated electric utilities. We assess the Pennsylvania regulatory environment as credit supportive, reflecting the overall constructive regulation during the transition to full-competitive rates. Additionally, we view the
