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Jersey Central Power & Light Company’s (JCP&L) ratings and Positive Outlook reflect the utility’s low-risk business profile, solid credit metrics, its status as a wholly owned subsidiary of FirstEnergy Corp. (FE; BBB-/Positive) and meaningful deleveraging at its corporate parent. The ratings also reflect the recent New Jersey Board of Public Utilities (BPU)-approved base rate case settlement. ���������ֳ� estimates JCP&L’s FFO leverage will average 3.3x during 2024–2026. An upgrade at corporate parent FE would likely result in an upgrade at JCP&L given ���������ֳ�’s rating case assumptions for the utility. JCP&L’s IDR is limited to a two-notch differential vis-à-vis FE’s IDR. Low Standalone Business Risk: JCP&L’s ratings and Positive Outlook consider the utility’s relatively low, standalone business risk profile as a pure transmission and distribution (T&D) utility. The ratings also reflect predictable earnings and cash flows and solid projected 2024– 2026 FFO leverage. ���������ֳ� estimates 2024-2026 FFO leverage will average 3.3x. Cash flows are supported by a quasi-monopolistic business model and provision of essential, rate-regulated electricity services. Balanced Rate Regulation: New Jersey rate regulation has been challenging from a credit perspective in the past, but ���������ֳ� believes New Jersey Board of Public Utilities’ (BPU) final orders in JCP&L’s last three base rate proceedings were constructive from a credit perspective. Federal rate regulation under the Federal Energy Regulatory Commission is, in ���������ֳ�’s view, generally balanced.