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Allegheny Energy Inc. Mar 10
Standard & Poors, March 2010
Abstract
Regulated utilities produce recurring operating cash flow; Scaled transition to market generation rates; Low-cost coal-fired generation; and Electric transmission investment with timely cost recovery. Significant exposure to potentially stricter environmental standards, especially surrounding carbon dioxide; Net revenue erosion from declining natural gas prices; and, Regulatory risk surrounding the pending merger with First Energy Corp. The ratings on Allegheny Energy Inc. reflect the regulated cash flows of utilities Monongahela Power Co., West Penn Power Co. (WPP), and Potomac Edison Co., and transmission company Trans-Allegheny Interstate Line Co. (TrAIL). In conjunction with these regulated cash flows is the higher business risk of unregulated generation subsidiary Allegheny Energy Supply Co. LLC (AE Supply). Allegheny's consolidated credit quality reflects a strong business risk profile...
Companies mentioned in this report are: Allegheny Energy Inc.,Monongahela Power Co.,Potomac Edison Co.,West Penn Power Co.,Allegheny Generating Co.,Allegheny Energy Supply Co. LLC,Trans-Allegheny Interstate Line Co.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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