Parent's fleet of low-cost, baseload power generation plants in Ohio and Pennsylvania; Relatively low-risk transmission and distribution (T&D) operations at parent; Generally constructive regulatory relationships; Good free cash flow generation and liquidity; and Stable financial profile. Commitment to credit quality is uncertain; A business strategy at the parent that exposes financial results to greater market risk; Parent's nuclear fleet's uneven historical operating performance; and Future environmental expenditures are not assured recovery. We base the corporate credit rating of West Penn Power Co. (WPP) on a consolidated analysis of its parent, FirstEnergy Corp. The parent company's transformation from an integrated electric utility holding company to a model that encompasses regulated electric T&D operations and unregulated merchant electric generation and marketing activities.
