Fitch Global Power Quarterly: U.S. Transmission Investment Moves Forward

Business Wire, June 4, 2007

NEW YORK -- In Fitch Ratings' opinion, recent changes to final Federal Energy Regulatory Commission (FERC) incentive transmission rules are unlikely to derail the anticipated acceleration of transmission projects by utilities over the next several years, as discussed in Fitch's current 'Global Power Quarterly.' The FERC issued an amended rule that revised and limited financial incentives to new power transmission projects.

From a credit perspective, Fitch believes investment in electric transmission is relatively low risk due to generally supportive FERC regulation, reimbursement of capital expenditures from regional transmission organization members, absence of volumetric risk and low operating risk.

The following topics are included in this month's quarterly:

-- Implications of the U.S. Supreme Court's decision on environmental issues. Fitch expects that the growing sense of urgency about environmental matters and global warming will lead to the passage of new environmental laws over the next several years that will most likely go far beyond the provisions of the Clean Air Act and related regulations that led to the two cases prompting these Supreme Court decisions;

-- Credit implications of renewable portfolio standards;

-- Equity credits and tax shields within hybrid securities;

-- Review of Fitch rating actions and Outlook changes during first quarter 2007.

The full 'Global Power Quarterly' is available on the Fitch Ratings web site at www.fitchratings.com.

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.