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Rating Action:

Moody's changes FirstEnergy outlook to stable; upgrades six utilities

15 Jul 2014

Approximately $23 billion in debt securities affected

NOTE: On April 15, 2015, the press release was corrected as follows: In the list of Affirmations, under the issuer Pennsylvania Electric Company, removed “Senior Unsecured Regular Bond/Debenture Apr 1, 2019, Affirmed A3”. Revised release follows.

NOTE: On August 4, 2014 the Press Release was corrected as follows:In the debt list, under Affirmations, for the issuer Ohio Air Quality Development Authority, the following line was added: ....Senior Secured Revenue Bonds Jun 1, 2018, Affirmed Baa2 Also under Affirmations, for the issuer Ohio Water Development Authority, the following line was added: ....Senior Secured Revenue Bonds Jun 1, 2033, Affirmed Baa2. Revised release follows:

New York, July 15, 2014 -- Moody's Investors Service, ("Moody's") today affirmed the long-term ratings of FirstEnergy Corp (FE, Baa3 Issuer and senior unsecured), FirstEnergy Solutions Corp (FES, Baa3 Issuer and senior unsecured) and Allegheny Energy Supply Co LLC (AES, Baa3 senior unsecured). The outlook on FE's rating is revised to stable from negative.

RATINGS RATIONALE

Moody's also upgraded the long-term ratings of six of FE's utility subsidiaries - Metropolitan Edison Co (MetEd, senior unsecured and Issuer rating to Baa1 from Baa2); Monongahela Power Co (Mon Pwr, senior secured to A3 from Baa1); Ohio Edison Co (OE, senior unsecured and Issuer rating to Baa1 from Baa2; senior secured to A2 from A3); Pennsylvania Power Co (PP, Issuer rating to Baa1 from Baa2; senior secured to A2 from A3); Potomac Edison Co (PE, Issuer rating to Baa2 from Baa3; senior secured to A3 from Baa1); and West Penn Power Co (WPP, Issuer rating to Baa1 from Baa2; senior secured to A2 from A3). The long-term ratings of FE's other utility subsidiaries were affirmed - Jersey Central Power & Light Co (JCP&L, Baa2 senior unsecured and Issuer rating and Ba1 preferred stock); Allegheny Generating Co.(AGC, Baa3 senior unsecured); Cleveland Electric Illuminating Co (CEI, Baa3 senior unsecured and Issuer rating; Baa1 senior secured; Ba2 preferred stock);Pennsylvania Electric Co (Pennelec, Baa2 senior unsecured and Issuer rating); and Toledo Edison Co (TE, Baa3 Issuer rating; Baa1 senior secured). The outlook on all utility ratings is stable, except for JCP&L, which remains on negative outlook.

"The revision of FE's rating outlook to stable from negative reflects a number of credit positive developments over the past year, including a refocus on regulated operations and transmission, an improving outlook for the merchant markets and strong capacity revenues in the next few years, a dividend reduction at FE and the upgrade of several of FE's utility subsidiaries", said Swami Venkataraman, Moody's Vice President -- Senior Credit Officer. "In addition, we expect FE's consolidated financial ratios to improve in 2015-16 to levels consistent with our expectations for its current Baa3 rating, such as CFO-pre WC to debt of 13-14%, CFO-pre WC interest coverage of about 3.5x, and retained cash flow to debt of about 10-11%."

Key drivers behind the expected increase in FE's cash flow coverage ratios in 2015 and 2016 are the strong improvement in PJM capacity revenues for FE's merchant fleet, higher earnings and cash flows from the transmission business, as well as substantial deferred tax benefits from the monetization of NOLs that improve cash flows. We have made a number of conservative assumptions when evaluating FE's likely financial profile over the next 2-3 years. This includes: (i) no benefits to FE's merchant business from the increase in forward market power prices seen thus far in 2014; (ii) a reduction in margins for FES in 2015-16 based on Moody's assumption that the company will limit its retail sales to about 75 TWhs, roughly equal to the size of FES' generation fleet; (iii) a scenario analysis on the outcome of the pending JCP&L rate case, including one where we assumed that the New Jersey commission will essentially accept the staff's recommendations on the rate case; and (iv) a scenario analysis on the transmission business that assumed a lower ROE for ATSI given recent reductions in ROE granted by FERC to transmission companies

The merchant business under FES remains a substantial part of FE's operations during our forecast period, accounting for 30-40% of consolidated cash flows, although much lower on an EPS basis. For this reason, we have evaluated FE under both our regulated electric and gas utilities and unregulated utilities and power companies rating methodologies.

The primary driver of the utility upgrades is Moody's more favorable view of the relative credit supportiveness of the US regulatory environment, as detailed in our September 2013 Request for Comment titled "Proposed Refinements to the Regulated Utilities Rating Methodology and our Evolving View of US Utility Regulation." Factors supporting this view include better cost recovery provisions, reduced regulatory lag, and generally fair and open relationships between utilities and regulators. The US utility sector's low number of defaults, high recovery rates, and generally strong financial metrics from a global perspective provide additional corroboration for these upgrades. These factors led to our industry-wide upgrade of most utility ratings in January 2014. FE's utility subsidiaries were excluded from that rating action because concerns regarding the credit profile of the parent company, reflected in the negative rating outlook on FE at that time.

CEI, TE and Penelec were not upgraded as part of this rating action because of their weaker financial profiles, which we don't anticipate will improve significantly over the next few years, offsetting the positive impact of improved regulatory environments. The CFO-pre WC /debt ratios of these utilities are expected to stay between 10-12%, which is consistent with the lower end of the Baa rating range.

JCP&L was also not upgraded and its rating outlook remains negative while the outcome of its ongoing rate case proceedings remains unresolved. A relatively mild ruling on the rate case that is not materially detrimental to credit quality or financial metrics could allow JCP&L to maintain its current Baa2 rating. This would require that the utility continue to be able to exhibit CFO pre-WC to debt in the mid-teens and CFO pre-WC interest coverage at about 4x on a sustainable basis.

We view the states of Ohio and Pennsylvania, where several of FE's utilities operate, as examples of more credit supportive regulatory frameworks in the US. The Public Utility Commission of Ohio (PUCO) provides a good suite of recovery mechanisms and flexible, company-specific frameworks for the utilities in the state, including riders for Demand Side Management, Energy Efficiency and Delivery Capital Recovery. Ohio utilities also benefit from the ability to securitize deferred costs through a non-bypassable charge and issued $445 million in such bonds in 2013. OE, CEI and TE operate under an Electric Security Plan or ESP that currently runs through May 2016. The ESP requires them to offer Standard Service Offer (SSO) generation services to customers who do not choose an alternative electric provider. Procurement and pricing for SSO is determined through periodic wholesale auctions and the costs are fully passed through to its customers. OE is rated higher than its sister utilities, CEI and TE, due to historically stronger financial metrics and a more diverse, two-state service territory.

Similarly, the Pennsylvania Public Utility Commission (PaPUC) provides FE's Pennsylvania utilities with a credit supportive regulatory environment, with mechanisms to ensure full recovery of costs associated with providing default electric service as well as trackers for recovering investments associated with energy efficiency and transmission. An energy cost adjustment surcharge applies to all customers receiving default electric service and provides for any over-recovery or under-recovery of actual costs for providing this service and is adjusted quarterly.

FE has indicated that it would file rate cases at some of its Pennsylvania utility subsidiaries in 2014. PP and WPP have not filed a rate case in many years. PP's last rate case was in 1988, at which time it was authorized an ROE of 12.9% (37.4% equity layer), while WPP'S last rate case was in 1994 with an ROE of 11.5% (45.5% equity layer). MetEd and Penelec have filed rate cases more recently, with their last rate cases in 2007 leading to an equity layer of 49% and an ROE of 10.1%. If FE decides to file a rate case at WPP and/or PP, it is possible that the allowed ROE could decline. However, it is also possible that the somewhat low equity layer may be adjusted upwards to partly compensate. We nevertheless expect the regulatory regime to remain supportive as in the past and for these utilities to maintain their financial profiles.

Located in West Virginia, MP is FE's only vertically integrated utility. It operates in a regulatory jurisdiction that has an economically challenged service territory and which has 100% of its own electric production sourced from coal-fired generating assets. MP's financial metrics have historically exhibited fluctuations due to an inability to recover incurred costs on a timely basis. However, there has been a material improvement in recent years due the recovery of previously incurred fuel costs, and base rate increases. The Public Service Commission of West Virginia's (WVPSC) approval of the sale of the previously merchant Harrison plant to MP and its addition to the rate base is also a positive. As required under the WVPSC order, MP filed a general rate case on April 30, 2014. Until the rate case is resolved, MP will earn on the asset through a $113 million surcharge. The rating incorporates our expectation that financial metrics may decline slightly in the next 2-3 years pro-forma for the debt associated with the Harrison plant purchase. PE's rating reflects its low risk business profile as a pure T&D operation in Maryland, although it files jointly in West Virginia with MP, and has an adequate financial profile.

The affirmation of AGC's Baa3 senior unsecured rating takes into consideration the fairly predictable revenue stream generated by the company under a FERC approved cost of service formulaic wholesale rate schedule. Under this arrangement, the company recovers from its shareholders, AES (59%) and Mon Pwr (41%), on a proportional basis, all of its operating expenses, taxes and a return on rate base that includes both a debt and an 11% equity return. Although the FERC regulation and sound financial performance suggest a higher rating, the rating is capped by the credit profile of AES, the majority owner which accounts for 59% of AGC's cash flows.

The ratings on FirstEnergy Transmission (FET) and its subsidiaries American Transmission Systems Inc (ATSI) and Trans-Allegheny Interstate Line Co (TrAIL) are unaffected. On April 21, 2014, Moody's assigned a Baa3 Issuer rating to FET, affirmed ATSI's Baa2 senior unsecured rating, and raised TrAIL's senior unsecured rating to A3 from Baa1. These actions fully incorporated FE's planned $4.2 billion transmission investment program from 2014-17 where the majority of the spend is at ATSI and TrailCo. It incorporates up to $1 billion of total debt (including revolver draws) at FET for the purpose of making equity infusions into ATSI and TrailCo.

OUTLOOK

The stable outlook on FE reflects our expectations for an improving financial profile over the next 2-3 years, driven by strong capacity pricing, deferred tax benefits, stabilizing conditions in the merchant power sector and a focus on regulated rate base driven investments. The outlook on all of FE's utilities, except JCP&L, is stable, reflecting our expectations for stable cash flows and continued credit supportive regulatory relationships at these utilities.

WHAT COULD CHANGE RATING -- UP

Prospects for any upside movement in ratings at FE or its utility subsidiaries are currently limited. An upgrade for FE will require a substantial and sustained improvement in FE's financial profile, which would likely be predicated on deleveraging or a major turnaround in merchant cash flows. Improvement in the ratings of FE's utilities is also dependent upon a strengthening of their individual financial profiles.

WHAT COULD CHANGE RATING -- DOWN

Downside risk could arise from a deterioration in the regulatory environment at any of its utilities or a weakening of financial metrics. A renewed downturn for the merchant industry, although not expected at this point, that significantly weakens the consolidated credit profile may also cause a downgrade. An unfavorable rate case outcome in New Jersey could trigger a rating downgrade at JCP&L. A downgrade of JCP&L is likely if expectations for future CFO pre-W/C to debt and CFO pre-W/C interest coverage fell further to about 10% and 3.0x, respectively.

Upgrades:

..Issuer: Beaver (County of) PA, Industrial Devel Auth

....Revenue Bonds Oct 1, 2015, Upgraded to Baa1 from Baa2

....Revenue Bonds Sep 1, 2024, Upgraded to Baa1 from Baa2

....Senior Secured Revenue Bonds Sep 1, 2021, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Sep 1, 2021, Upgraded to A2 from A3

..Issuer: BVPS II Funding Corp.

....Senior Secured Shelf, Upgraded to (P)Baa1 from (P)Baa2

....Senior Secured Sec. Lease Oblig. Bond Jun 1, 2017, Upgraded to Baa1 from Baa2

....Senior Secured Sec. Lease Oblig. Bond Jun 1, 2017, Upgraded to Baa1 from Baa2

..Issuer: Harrison (County of) WV, County Commission

....Senior Unsecured Revenue Bonds Aug 1, 2024, Upgraded to Baa2 from Baa3

....Senior Unsecured Revenue Bonds Apr 15, 2022, Upgraded to Baa2 from Baa3

....Senior Unsecured Revenue Bonds May 1, 2023, Upgraded to Baa2 from Baa3

..Issuer: Lawrence County Industrial Dev. Auth., PA

....Senior Secured Revenue Bonds Mar 1, 2017, Upgraded to A2 from A3

..Issuer: Metropolitan Edison Company

.... Issuer Rating, Upgraded to Baa1 from Baa2

....Senior Secured Medium-Term Note Program, Upgraded to (P)A2 from (P)A3

....Senior Unsecured Regular Bond/Debenture Apr 15, 2025, Upgraded to Baa1 from Baa2

....Senior Unsecured Regular Bond/Debenture Jan 15, 2019, Upgraded to Baa1 from Baa2

....Senior Unsecured Regular Bond/Debenture Mar 15, 2023, Upgraded to Baa1 from Baa2

..Issuer: Monongahela Power Company

....Senior Secured First Mortgage Bonds Mar 15, 2017, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Apr 15, 2024, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Dec 15, 2043, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Oct 15, 2015, Upgraded to A3 from Baa1

..Issuer: Ohio Air Quality Development Authority

....Revenue Bonds Dec 1, 2014, Upgraded to A2 from A3

....Revenue Bonds Jul 1, 2023, Upgraded to Baa1 from Baa2

....Revenue Bonds Sep 1, 2018, Upgraded to Baa1 from Baa2

....Senior Secured Revenue Bonds Jun 1, 2033, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Apr 1, 2029, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Apr 1, 2029, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Jun 1, 2033, Upgraded to A2 from A3

....Senior Secured Revenue Bonds May 15, 2029, Upgraded to A2 from A3

....Senior Unsecured Revenue Bonds Jan 1, 2029, Upgraded to Baa1 from Baa2

....Senior Unsecured Revenue Bonds Feb 1, 2015, Upgraded to Baa1 from Baa2

....Senior Unsecured Revenue Bonds Jan 1, 2029, Upgraded to Baa1 from Baa2

..Issuer: Ohio Edison Company

.... Issuer Rating, Upgraded to Baa1 from Baa2

....Senior Secured First Mortgage Bonds Oct 15, 2018, Upgraded to A2 from A3

....Senior Secured First Mortgage Bonds Oct 15, 2038, Upgraded to A2 from A3

....Senior Unsecured Regular Bond/Debenture Jul 15, 2036, Upgraded to Baa1 from Baa2

..Issuer: Ohio Water Development Authority

....Revenue Bonds Dec 1, 2014, Upgraded to A2 from A3

....Revenue Bonds Jul 1, 2023, Upgraded to Baa1 from Baa2

....Revenue Bonds Jan 15, 2020, Upgraded to Baa1 from Baa2

....Revenue Bonds Oct 1, 2023, Upgraded to Baa1 from Baa2

....Revenue Bonds Sep 1, 2018, Upgraded to Baa1 from Baa2

....Senior Secured Revenue Bonds Apr 1, 2029, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Apr 1, 2029, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Jun 1, 2033, Upgraded to A2 from A3

....Senior Secured Revenue Bonds Jun 1, 2033, Upgraded to A2 from A3

....Senior Secured Revenue Bonds May 15, 2029, Upgraded to A2 from A3

..Issuer: Pennsylvania Power Company

.... Issuer Rating, Upgraded to Baa1 from Baa2

....Multiple Seniority Shelf, Upgraded to (P)A2 from (P)A3

....Multiple Seniority Shelf, Upgraded to (P)Baa3 from (P)Ba1

....Senior Secured First Mortgage Bonds, Upgraded to A2 from A3

..Issuer: Pleasants (County of) WV, County Commission

....Senior Unsecured Revenue Bonds May 1, 2015, Upgraded to Baa2 from Baa3

..Issuer: PNPP II Funding Corp.

....Senior Secured Sec. Lease Oblig. Bond May 30, 2016, Upgraded to A2 from A3

....Senior Secured Sec. Lease Oblig. Bond May 30, 2016, Upgraded to Baa1 from Baa2

....Senior Secured Sec. Lease Oblig. Bond May 30, 2016, Upgraded to Baa1 from Baa2

....Senior Secured Sec. Lease Oblig. Bond May 30, 2016, Upgraded to Baa1 from Baa2

..Issuer: Potomac Edison Company (The)

.... Issuer Rating, Upgraded to Baa2 from Baa3

....Senior Secured First Mortgage Bonds Nov 15, 2014, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Oct 15, 2016, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Oct 15, 2016, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Aug 15, 2015, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Oct 15, 2016, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Oct 15, 2016, Upgraded to A3 from Baa1

....Senior Secured First Mortgage Bonds Oct 15, 2016, Upgraded to A3 from Baa1

..Issuer: West Penn Power Company

.... Issuer Rating, Upgraded to Baa1 from Baa2

....Senior Secured First Mortgage Bonds Aug 15, 2016, Upgraded to A2 from A3

....Senior Secured First Mortgage Bonds Dec 15, 2017, Upgraded to A2 from A3

Assignments:

..Issuer: FirstEnergy Corp.

....Senior Unsecured Bank Credit Facility Mar 31, 2019, Assigned Baa3

..Issuer: FirstEnergy Solutions Corp.

....Senior Unsecured Bank Credit Facility Mar 31, 2019, Assigned Baa3

Outlook Actions:

..Issuer: Allegheny Energy Supply Company, LLC

....Outlook, Remains Stable

..Issuer: Allegheny Generating Company

....Outlook, Remains Stable

..Issuer: Beaver Valley II Funding Corp.

....Outlook, Remains Stable

..Issuer: BVPS II Funding Corp.

....Outlook, Remains Stable

..Issuer: Cleveland Electric Illuminating Company (The)

....Outlook, Remains Stable

..Issuer: CTC Beaver Valley Funding Corporation

....Outlook, Remains Stable

..Issuer: FirstEnergy Corp.

....Outlook, Changed To Stable From Negative

..Issuer: FirstEnergy Solutions Corp.

....Outlook, Remains Stable

..Issuer: Jersey Central Power & Light Company

....Outlook, Remains Negative

..Issuer: Metropolitan Edison Company

....Outlook, Remains Stable

..Issuer: Monongahela Power Company

....Outlook, Remains Stable

..Issuer: Ohio Edison Company

....Outlook, Remains Stable

..Issuer: Pennsylvania Electric Company

....Outlook, Remains Stable

..Issuer: Pennsylvania Power Company

....Outlook, Remains Stable

..Issuer: PNPP II Funding Corp.

....Outlook, Remains Stable

..Issuer: Potomac Edison Company (The)

....Outlook, Remains Stable

..Issuer: Toledo Edison Company

....Outlook, Remains Stable

..Issuer: West Penn Power Company

....Outlook, Remains Stable

Affirmations:

..Issuer: Allegheny Energy Supply Company, LLC

....Senior Unsecured Regular Bond/Debenture Oct 15, 2019, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture Oct 15, 2039, Affirmed Baa3

..Issuer: Allegheny Generating Company

....Senior Unsecured Regular Bond/Debenture Jul 15, 2021, Affirmed Baa3

..Issuer: Beaver (County of) PA, Industrial Devel Auth

....Senior Secured Revenue Bonds Apr 1, 2035, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2035, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2035, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2035, Affirmed Baa1

....Senior Secured Revenue Bonds Jul 15, 2025, Affirmed Baa1

....Senior Secured Revenue Bonds May 1, 2025, Affirmed Baa1

....Senior Secured Revenue Bonds May 1, 2020, Affirmed Baa1

....Senior Unsecured Revenue Bonds Nov 1, 2020, Affirmed Baa2

....Senior Unsecured Revenue Bonds Jan 1, 2035, Affirmed Baa3

....Senior Unsecured Revenue Bonds Dec 1, 2035, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2030, Affirmed Baa3

....Senior Unsecured Revenue Bonds Apr 1, 2041, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jan 1, 2035, Affirmed Baa3

....Senior Unsecured Revenue Bonds Mar 1, 2017, Affirmed Baa3

....Senior Unsecured Revenue Bonds Dec 1, 2041, Affirmed Baa3

....Senior Unsecured Revenue Bonds Apr 1, 2035, Affirmed Baa3

..Issuer: Beaver County Ind. Dev. Auth, PA

....Senior Unsecured Revenue Bonds Oct 1, 2047, Affirmed Baa3

..Issuer: Beaver Valley II Funding Corp.

....Senior Secured Sec. Lease Oblig. Bond Jun 1, 2017, Affirmed Baa3

..Issuer: Bruce Mansfield Unit 1

....Senior Secured Pass-Through Jun 1, 2034, Affirmed Baa3

..Issuer: Cleveland Electric Illuminating Company (The)

.... Issuer Rating, Affirmed Baa3

....Pref. Stock Preferred Stock, Affirmed Ba2

....Pref. Stock Preferred Stock, Affirmed Ba2

....Pref. Stock Preferred Stock, Affirmed Ba2

....Senior Secured First Mortgage Bonds Nov 15, 2018, Affirmed Baa1

....Senior Secured First Mortgage Bonds Aug 15, 2024, Affirmed Baa1

....Senior Secured Regular Bond/Debenture Nov 1, 2017, Affirmed Baa1

....Senior Secured Regular Bond/Debenture Nov 1, 2017, Affirmed Baa1

....Senior Secured Regular Bond/Debenture Nov 1, 2017, Affirmed Baa1

....Senior Unsecured Regular Bond/Debenture Apr 1, 2017, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture Dec 15, 2036, Affirmed Baa3

..Issuer: CTC Beaver Valley Funding Corporation

....Senior Secured Sec. Lease Oblig. Bond Jun 1, 2017, Affirmed Baa3

..Issuer: FirstEnergy Corp.

.... Issuer Rating, Affirmed Baa3

....Multiple Seniority Shelf May 17, 2015, Affirmed (P)Ba1

....Multiple Seniority Shelf May 17, 2015, Affirmed (P)Baa3

....Senior Unsecured Regular Bond/Debenture Mar 15, 2023, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture Nov 15, 2031, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture Mar 15, 2018, Affirmed Baa3

....Senior Unsecured Shelf, Affirmed (P)Baa3

..Issuer: FirstEnergy Solutions Corp.

.... Issuer Rating, Affirmed Baa3

....Senior Unsecured Bank Credit Facility May 8, 2017, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture Aug 15, 2021, Affirmed Baa3

....Senior Unsecured Regular Bond/Debenture Aug 15, 2039, Affirmed Baa3

..Issuer: Harrison (County of) WV, County Commission

....Senior Unsecured Revenue Bonds Oct 15, 2037, Affirmed Baa3

..Issuer: Jersey Central Power & Light Company

.... Issuer Rating, Affirmed Baa2

....Pref. Stock Preferred Stock, Affirmed Ba1

....Pref. Stock Preferred Stock, Affirmed Ba1

....Pref. Stock Preferred Stock, Affirmed Ba1

....Senior Unsecured Regular Bond/Debenture Jun 15, 2018, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 15, 2018, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 1, 2037, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 1, 2037, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Apr 1, 2024, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 1, 2017, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 1, 2037, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture May 1, 2016, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Feb 1, 2019, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 1, 2037, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 1, 2037, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture May 15, 2036, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Jun 15, 2018, Affirmed Baa2

..Issuer: New Jersey Economic Development Authority

....Senior Secured Revenue Bonds Jul 1, 2015, Affirmed A3

..Issuer: Ohio Air Quality Development Authority

....Revenue Bonds Dec 1, 2020, Affirmed Baa1

....Revenue Bonds Nov 1, 2022, Affirmed Baa1

....Revenue Bonds Nov 1, 2022, Affirmed Baa1

....Revenue Bonds May 1, 2017, Affirmed Baa1

....Senior Secured Revenue Bonds Jun 1, 2018, Affirmed Baa2

....Senior Secured Revenue Bonds Apr 1, 2024, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2024, Affirmed Baa1

....Senior Secured Revenue Bonds Aug 1, 2027, Affirmed Baa1

....Senior Secured Revenue Bonds Aug 1, 2020, Affirmed Baa1

....Senior Secured Revenue Bonds Aug 1, 2020, Affirmed Baa1

....Senior Secured Revenue Bonds Aug 1, 2025, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2024, Affirmed Baa1

....Senior Secured Revenue Bonds Jul 1, 2023, Affirmed Baa1

....Senior Secured Revenue Bonds Jul 1, 2023, Affirmed Baa1

....Senior Unsecured Revenue Bonds Jan 1, 2034, Affirmed Baa3

....Senior Unsecured Revenue Bonds Oct 1, 2018, Affirmed Baa3

....Senior Unsecured Revenue Bonds Oct 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Oct 1, 2018, Affirmed Baa3

....Senior Unsecured Revenue Bonds Dec 1, 2023, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jul 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Aug 1, 2029, Affirmed Baa3

....Senior Unsecured Revenue Bonds Aug 1, 2020, Affirmed Baa3

..Issuer: Ohio Water Development Authority

....Revenue Bonds Jun 1, 2023, Affirmed Baa1

....Revenue Bonds Dec 1, 2020, Affirmed Baa1

....Revenue Bonds Nov 1, 2022, Affirmed Baa1

....Revenue Bonds May 15, 2019, Affirmed Baa1

....Revenue Bonds Oct 1, 2023, Affirmed Baa1

....Revenue Bonds Oct 1, 2023, Affirmed Baa1

....Revenue Bonds Nov 1, 2022, Affirmed Baa1

....Senior Secured Revenue Bonds Jun 1, 2033, Affirmed Baa2

....Senior Secured Revenue Bonds Apr 1, 2024, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2024, Affirmed Baa1

....Senior Secured Revenue Bonds Aug 1, 2020, Affirmed Baa1

....Senior Secured Revenue Bonds Aug 1, 2025, Affirmed Baa1

....Senior Secured Revenue Bonds Oct 1, 2030, Affirmed Baa1

....Senior Secured Revenue Bonds Apr 1, 2024, Affirmed Baa1

....Senior Secured Revenue Bonds Jun 1, 2023, Affirmed Baa1

....Senior Secured Revenue Bonds Oct 1, 2023, Affirmed Baa1

....Senior Secured Revenue Bonds Oct 1, 2023, Affirmed Baa1

....Senior Unsecured Revenue Bonds Jun 15, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Dec 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jan 1, 2034, Affirmed Baa3

....Senior Unsecured Revenue Bonds Sep 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Oct 1, 2018, Affirmed Baa3

....Senior Unsecured Revenue Bonds Oct 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 15, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jul 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Aug 1, 2029, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2033, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2033, Affirmed Baa3

..Issuer: Pennsylvania Economic Dev. Fin. Auth.

....Senior Unsecured Revenue Bonds Dec 1, 2040, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2028, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jun 1, 2028, Affirmed Baa3

....Senior Unsecured Revenue Bonds Nov 1, 2041, Affirmed Baa3

....Senior Unsecured Revenue Bonds Jul 15, 2039, Affirmed Baa3

....Senior Unsecured Revenue Bonds Nov 1, 2041, Affirmed Baa3

..Issuer: Pennsylvania Electric Company

.... Issuer Rating, Affirmed Baa2

....Senior Secured Medium-Term Note Program, Affirmed (P)A3

....Senior Unsecured Regular Bond/Debenture Oct 1, 2038, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Apr 15, 2025, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Apr 1, 2019, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Apr 1, 2019, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Apr 1, 2020, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture Sep 1, 2017, Affirmed Baa2

..Issuer: Pleasants (County of) WV, County Commission

....Senior Unsecured Revenue Bonds Oct 15, 2037, Affirmed Baa3

..Issuer: Toledo Edison Company

.... Issuer Rating, Affirmed Baa3

....Senior Secured First Mortgage Bonds May 1, 2020, Affirmed Baa1

....Senior Secured Regular Bond/Debenture May 15, 2037, Affirmed Baa1

The principal methodology used in rating FirstEnergy Corp.; FirstEnergy Solutions Corp.; and Allegheny Energy Supply Company, LLC was Unregulated Utilities and Power Companies published in August 2009. The principal methodology used in rating Allegheny Generating Company; Cleveland Electric Illuminating Company (The); Metropolitan Edison Company; Monongahela Power Company; Ohio Edison Company; Pennsylvania Electric Company; Pennsylvania Power Company; Potomac Edison Company; Toledo Edison Company; West Penn Power Company; and Jersey Central Power & Light Company was Regulated Electric and Gas Utilities published in December 2013. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this rating action, and whose ratings may change as a result of this rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Swami Venkataraman, CFA
VP - Senior Credit Officer
Infrastructure Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

William L. Hess
MD - Utilities
Infrastructure Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Moody's changes FirstEnergy outlook to stable; upgrades six utilities

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