Fitch Rates JEA Variable Rate Electric Sys Revs, Series Three 2008C 'AA-/F1+'

Business Wire, April 29, 2008

NEW YORK -- Fitch Ratings assigns a rating of 'AA-/F1 ' to the $260,000,000 JEA variable rate electric system revenue bonds, Series Three 2008D consisting of $130,000,000 Series Three 2008D-1 Bonds and $130,000,000 Series Three 2008D-2 Bonds. Fitch also affirms the rating on JEA's outstanding variable rate senior and subordinate electric system revenue bonds at 'AA-'. The Outlook is Stable. The 'AA-' rating is based on the long-term credit quality of JEA's Electric System. (For more information on the credit quality of JEA's Electric System, see Fitch Ratings press release dated March 10, 2008, available at www.fitchratings.com.) The short-term 'F1 ' rating on the Series Three 2008D-1 Bonds is based on the liquidity support provided by Wachovia Bank, National Association, in the form of a standby bond purchase agreement (SBPA) and the short-term 'F1 ' rating on the Series Three 2008D-2 is based on the liquidity support provided by Fortis Bank S.A./N.V., acting through its New York Branch, in the form of a SBPA .

Each SBPA provides for the payment of the purchase price of tendered bonds during the daily and weekly mode, and is sized to cover the principal portion of the purchase price and 36 days of interest at the maximum interest rate of 12%, based upon a year of 365 days. The SBPA will also be available to pay the principal component of the purchase price upon conversion to a term or flexible rate mode. The SBPAs will expire on the stated termination date of May 5, 2009, unless such date is extended, or upon the occurrence of certain events of termination as specified in each of the SBPAs. The short-term ratings will expire upon any expiration or termination of the respective SBPAs. The remarketing agent for the Series Three 2008D Bonds is Citigroup Global Markets Inc. The bonds are expected to be delivered on or about May 6, 2008.

The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, auction, term, flexible or fixed rate mode. While bonds bear interest in the daily or weekly rate mode, interest is payable on the first business day of each month, commencing June 2, 2008. During the daily and weekly rate modes, holders have the option to tender their bonds on any business day, following the required prior notice to the tender agent. The bonds are subject to mandatory tender: (1) on the fifth business day prior to the SBPA expiration date; (2) on the date of any SBPA substitution if the rating has not been confirmed by each rating agency then rating the bonds; (3) on any mode adjustment date (other than a mode adjustment date relating to a change in the weekly rate determination date); (4) during the term or flexible rate mode, on any rate adjustment date; (5) during the term mode at the option of JEA after bonds are eligible for optional redemption; (6) at least 20 days after JEA directs the tender agent to call a mandatory tender in order to enable any resolution amendment requiring the consent of bondholders to become effective; and (7) on the 15th day after the tender agent receives notice from the bank of its intention to terminate the SBPA. Optional and mandatory redemption provisions also apply to the bonds pursuant to the terms of the authorizing documents.

The proceeds of the series 2008D-1 bonds will be used to (1) provide the funds required to refund JEA's Variable Rate Electric System Revenue Bonds, Series Three 2007A; (2) provide funds for deposit to the Initial Subaccount in the Debt Service Reserve Account in the Sinking Fund and/or the Construction Reserve Account and/or the Construction Fund and (3) pay the cost of issuance of the Series Three 2008D-1 Bonds. The proceeds of the Series 2008D-2 bonds will be used to (1) provide the funds required to refund JEA's Variable Rate Electric System Revenue Bonds, Series Three 2007B; (2) provide funds for deposit to the Initial Subaccount in the Debt Service Reserve Account in the Sinking Fund and/or the Construction Reserve Account and/or the Construction Fund and (3) pay the cost of issuance of the Series Three 2008D-2 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.