Fitch Rates Intermountain Power Agency $352.8MM 2006A&B Sub Revs 'AAA/F1+'

Business Wire, April 3, 2006

NEW YORK -- Fitch Ratings has assigned a rating of 'AAA/F1 ' to Intermountain Power Agency Utah's (IPA) $352,800,000 variable-rate subordinated power supply revenue refunding bonds, consisting of the following:

-- $176,400,000 2006 series A;

-- $176,400,000 2006 series B.

The long-term 'AAA' rating is based on the support of a municipal bond insurance policy provided by Financial Guaranty Insurance Company, which insures scheduled payments of principal and interest on the bonds. The insurance policy extends to July 1, 2023, the final maturity date of the bonds. Each series has two maturity dates, the first being July 1, 2016 on which $93,200,000 of each series will mature, and the second being July 1, 2023, on which the remaining $83,200,000 of each series will mature. The short-term 'F1 ' rating on the bonds is based on the liquidity support of a standby bond purchase agreement (SBPA) provided by Citibank, N.A.

The SBPA provides for the payment of purchase price of tendered bonds and is sized to cover the principal portion of the purchase price, and during the daily and weekly rate modes, 36 days of interest calculated at a maximum rate of 12%, based on a 365-day year. The SBPA will expire on the earlier of: April 3, 2009, the stated expiration date of the SBPA, unless such date is extended; or the occurrence of certain events of termination in accordance with its terms. The short-term rating assigned to the bonds will expire upon the expiration or termination of the SBPA. The remarketing agents for the bonds are: Goldman, Sachs & Co. for the series A bonds maturing on July 1, 2016; Morgan Stanley & Co. Incorporated for the series A bonds maturing on July 1, 2023, and for the series B bonds maturing on July 1, 2016; and UBS Securities LLC for the Series B bonds maturing on July 1, 2023. The bonds are expected to be delivered on or about April 4, 2006.

The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, flexible, term, fixed or auction interest rate mode. While the bonds bear interest in the daily and weekly rate modes, interest is payable on the first business day of each month, commencing May 1, 2006. Holders of bonds bearing interest at a daily or weekly rate mode may tender their bonds for purchase with prior notice. The bonds are subject to mandatory tender: (i) on each interest rate mode change date; (ii) at the end of a flexible or term rate period; (iii) upon the expiration, termination or substitution of the SBPA, or upon the substitution of the bond insurer; (iv) while in the term rate mode, on any business day selected by IPA on which bonds of a series and maturity may be optionally redeemed; and (v) upon an amendment to the Second Supplemental Subordinated Resolution or the Subordinated Resolution, on a business day selected by IPA. Mandatory and optional redemption provisions also apply to the bonds pursuant to the terms of the documents.

Bond proceeds will be used to refund a portion of IPA's outstanding bonds.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.