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EXHIBIT 33.1
 REPORT ON ASSESSMENT OF COMPLIANCE WITH SERVICING CRITERIA
FOR ASSET-BACKED SECURITIES
  .
     THE POTOMAC EDISON COMPANY,
as Servicer/s/ Barry E. PakenhamName:
    Barry E. PakenhamTitle:
    Treasurer




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Appendix A
 APPLICABLE
    
    INAPPLICABLESERVICING CRITERIA
    
    SERVICING CRITERIA
    
    SERVICING CRITERIAGeneral Servicing Considerations1122(d)(1)(i)
    
    Policies and procedures are instituted to monitor any
performance or other triggers and events of default in
accordance with the transaction agreements.
    
    X11122(d)(1)(ii)
    
    If any material servicing activities are outsourced to
third parties, policies and procedures are instituted
to monitor the third partys performance and
compliance with such servicing activities.
    
    
    
    X1122(d)(1)(iii)
    
    Any requirements in the transaction agreements to
maintain a back-up servicer for the environmental
control property are maintained.
    
    
    
    X1122(d)(1)(iv)
    
    A fidelity bond and errors and omissions policy is in
effect on the party participating in the servicing
function throughout the reporting period in the amount
of coverage required by and otherwise in accordance
with the terms of the transaction agreements.
    
    
    
    XCash Collection and Administration1122(d)(2)(i)
    
    Payments on pool assets are deposited into the
appropriate custodial bank accounts and related bank
clearing accounts no more than two business days
following receipt, or such other number of days
specified in the transaction agreements.
    
    X1122(d)(2)(ii)
    
    Disbursements made via wire transfer on behalf of an
obligor or to an investor are made only by authorized
personnel.
    
    X1122(d)(2)(iii)
    
    Advances of funds or guarantees regarding collections,
cash flows or distributions, and any interest or other
fees charged for such advances, are made, reviewed and
approved as specified in the transaction agreements.
    
    X21122(d)(2)(iv)
    
    The related accounts for the transaction, such as cash
reserve accounts or accounts established as a form of
overcollateralization, are separately maintained
(e.g., with respect to commingling of cash) as set
forth in the transaction agreements.
    
    X31122(d)(2)(v)
    
    Each custodial account is maintained at a federally
insured depository institution as set forth in the
transaction agreements. For purposes of this
criterion, federally insured depository institution
with respect to a foreign financial institution means
a foreign financial institution that meets the
requirements of 240.13k-1(b)(1) of this chapter,
    
    X41122(d)(2)(vi)
    
    Unissued checks are safeguarded so as to prevent
unauthorized access.
    
    
    
    X
 
 1
    
    The Asserting Party monitors events of default as
obligated pursuant to the transaction agreements.2
    
    No advances by the Asserting Party or the Trustee are
permitted under the applicable transaction documents.3
    
    Excess funds and other transaction accounts are
maintained and applied by the Trustee in accordance with the requirements of
the Indenture.4
    
    All custodial accounts are maintained by the Trustee
and invested in accordance with the requirements of the Indenture.




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APPLICABLE
    
    INAPPLICABLESERVICING CRITERIA
    
    SERVICING CRITERIA
    
    SERVICING CRITERIA1122(d)(2)(vii)
    
    Reconciliations are prepared on a monthly basis for
all asset-backed securities related bank accounts,
including custodial accounts and related bank clearing
accounts. These reconciliations are (A) mathematically
accurate; (B) prepared within 30 calendar days after
the bank statement cutoff date, or such other number
of days specified in the transaction agreements; (C)
reviewed and approved by someone other than the person
who prepared the reconciliation; and (D) contain
explanations for reconciling items. These reconciling
items are resolved within 90 calendar days of their
original identification, or such other number of days
specified in the transaction agreements.
    
    XInvestor Remittances and Reporting1122(d)(3)(i)
    
    Reports to investors, including those to be filed with
the Commission, are maintained in accordance with the
transaction agreements and applicable Commission
requirements. Specifically, such reports (A) are
prepared in accordance with timeframes and other terms
set forth in the transaction agreements; (B) provide
information calculated in accordance with the terms
specified in the transaction agreements; (C) are filed
with the Commission as required by its rules and
regulations; and (D) agree with investors or the
trustees records as to the total unpaid principal
balance and number of pledged assets serviced by the
Servicer.
    
    X1122(d)(3)(ii)
    
    Amounts due to investors are allocated and remitted in
accordance with timeframes, distribution priority and
other terms set forth in the transaction agreements.
    
    X51122(d)(3)(iii)
    
    Disbursements made to an investor are posted within two
business days to the Servicers investor records, or
such other number of days specified in the transaction
agreements.
    
    
    
    X1122(d)(3)(iv)
    
    Amounts remitted to investors per the investor reports
agree with cancelled checks, or other form of payment,
or custodial bank statements.
    
    
    
    XPool Asset Administration1122(d)(4)(i)
    
    Collateral or security on pool assets is maintained as
required by the transaction agreements or related
documents.
    
    X1122(d)(4)(ii)
    
    Pool assets and related documents are safeguarded as
required by the transaction agreements.
    
    X1122(d)(4)(iii)
    
    Any additions, removals or substitutions to the pool
asset are made, reviewed and approved in accordance
with any conditions or requirements in the transaction
agreements.
    
    X61122(d)(4)(iv)
    
    Payments on pool assets, including any payoffs, made
in accordance with the related pool asset documents
are posted to the applicable Servicers obligor
records maintained no more than two business days
after receipt, or such other number of days specified
in the transaction agreements, and allocated to
principal, interest or other items (e.g., escrow) in
accordance with the related pool asset documents.
    
    X1122(d)(4)(v)
    
    The Servicers records regarding the pool assets agree
with the Servicers records with respect to an
obligors unpaid principal balance.
    
    
    
    X
 
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    The Asserting Party is responsible for allocations of
amounts due and provides such information to the Trustee via payment due
statements. No payment date statements were issued by the Asserting Party
during the period from April 11, 2007 to December 31, 2007. The Trustee is
responsible for remittance.6
    
    No removals or substitutions of pledged assets are
allowed under the transaction documents.




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APPLICABLE
    
    INAPPLICABLESERVICING CRITERIA
    
    SERVICING CRITERIA
    
    SERVICING CRITERIA1122(d)(4)(vi)
    
    Changes with respect to the terms or status of an
obligors pool asset (e.g. loan modifications or
re-agings) are made, reviewed and approved by
authorized personnel in accordance with the
transaction agreements and related asset documents.
    
    X1122(d)(4)(vii)
    
    Loss mitigation or recovery actions (e.g., forbearance
plans, modifications and deeds in lieu of foreclosure,
foreclosures and repossessions, as applicable) are
initiated, conducted and concluded in accordance with
the timeframes or other requirements established by
the transaction agreements.
    
    X1122(d)(4)(viii)
    
    Records documenting collection efforts are maintained
during the period a pool asset is delinquent in
accordance with the transaction agreements. Such
records are maintained on at least a monthly basis, or
such other period specified in the transaction
agreements, and describe the entitys activities in
monitoring delinquent assets including, for example,
phone calls, letters and payment rescheduling plans in
cases where delinquency is deemed temporary (e.g.,
illness or unemployment).
    
    X1122(d)(4)(ix)
    
    Adjustments to interest rates or rates of return for
pool assets with variable rates are computed based on
the related pool asset documents.
    
    
    
    X1122(d)(4)(x)
    
    Regarding any funds held in trust for an obligor (such
as escrow accounts): (A) such funds are analyzed, in
accordance with the obligors pool asset documents, on
at least an annual basis, or such other period
specified in the transaction agreements; (B) interest
on such funds is paid, or credited, to obligors in
accordance with applicable pool asset documents and
state laws; and (C) such funds are returned to the
obligor within 30 calendar days of full repayment of
the related pool asset, or such other number of days
specified in the transaction agreements.
    
    X71122(d)(4)(xi)
    
    Payments made on behalf of an obligor (such as tax or
insurance payments) are made on or before the related
penalty or expiration dates, as indicated on the
appropriate bills or notices for such payments,
provided that such support has been received by the
Servicer at least 30 calendar days prior to these
dates, or such other number of days specified in the
transaction agreements.
    
    
    
    X1122(d)(4)(xii)
    
    Any late payment penalties in connection with any
payment to be made on behalf of an obligor are paid
from the Servicers funds and not charged to the
obligor, unless the late payment was due to the
obligors error or omission.
    
    
    
    X1122(d)(4)(xiii)
    
    Disbursements made on behalf of an obligor are posted
within two business days to the obligors records
maintained by the Servicer, or such other number of
days specified in the transaction agreements.
    
    
    
    X1122(d)(4)(xiv)
    
    Delinquencies, charge-offs and uncollectible accounts
are recognized and recorded in accordance with the
transaction agreements.
    
    X1122(d)(4)(xv)
    
    Any external enhancement or other support, identified
in Item 1114(a)(1) through (3) or Item 1115 of
Regulation AB, is maintained as set forth in the
transaction agreements.
    
    
    
    X
 
 7
    
    The Asserting Party maintains customer deposits in
accordance with the rules and regulations of the West Virginia Public Service
Commission, as required by the transaction documents.