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Katie Sproles, 341-1850
Eugene Water & Electric Board

June 24, 2008

Eugene Water & Electric Board receives high bond ratings

The Eugene Water & Electric Board received an AA rating for its water utility and a AA- for its electric utility from Standard & Poor’s (S&P). The water utility rating represents an upgrade from AA-.

“Both ratings reaffirm EWEB’s good credit standing,” says Corporate Services Director Jim Origliosso. “The raised water utility rating reflects our Board of Commissioner’s demonstrated commitment to long-term financial stability, as evidenced by its willingness to maintain rates at a level that supports upgrading aging infrastructure.”

Indicating their confidence in EWEB’s ability to maintain high ratings going forward, S&P gave both the water and electric utility ratings a “stable” outlook.

Each time EWEB issues bonds, its creditworthiness is reviewed by the three major national credit rating agencies, Standard and Poor's, Moody’s and Fitch Ratings. EWEB is issuing both electric and water bonds on June 25.

The water utility is issuing $15 million in water bonds to fund capital improvements including the expansion of the Hayden Bridge Filtration Plant. The electric utility is issuing $84 in electric bonds, which includes $55 million for new water and electric operations facilities.

“Good credit ratings impact not only the interest rate on EWEB bonds, but also play a large role in the amount and terms of credit that is extended in power purchase and sales transactions and acquisition opportunities for new resources,” explains Origliosso.

EWEB most recently issued bonds in August 2006 to finance the relicensing of the Carmen-Smith Hydroelectric Project and to acquire land and fund design costs for the new operations facilities.

The Eugene Water & Electric Board is Oregon’s largest customer-owned utility and provides electricity, water and steam to more than 87,000 homes, business, schools and other customers in Eugene, Ore. A five-member Board of Commissioners, elected by the citizens of Eugene, governs the Eugene Water & Electric Board. This board retains full control and sets policies for the water, electric and steam utilities.