ElectriCities  Press Release

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For Immediate Release: May 6, 2008
Contact:Rebecca Agner, Manager, Strategic Communications, 919/760-6334

NCMPA1 Credit Rating Upgraded by Bond Rating Agencies

Raleigh, NC, May 6, 2008 –Two credit rating agencies upgraded the credit rating of North Carolina Municipal Power Agency Number 1 (NCMPA1) after a comprehensive update provided by the Power Agency, while a third rating agency affirmed a recent upgrade. Moody’s Investor Services upgraded the rating from A3(stable) to A2(stable). FitchRatings upgraded the rating from A-(stable) to A(stable). Standard and Poors reaffirmed their rating of A- that was upgraded from BBB+ in December of 2007. Factors influential in the upgrades include NCMPA1’s strong financial position, its sound market position with its nuclear ownership and its improved supplemental power supply arrangements.

The upgrades will have a positive impact on the cost of current refundings as the rating for the Power Agency is a key factor in determining cost components of debt issuance. NCMPA1 will issue bonds to refund all or a portion of a number of series of Catawba Electric Revenue Bonds currently outstanding (including all of the Agency’s auction rate securities). In addition, bonds will be issued to cover part of the Agency’s share of costs of the capital improvements to the Catawba Nuclear Station. The bond issuances are scheduled to close on May 21, 2008.

“We are extremely pleased that the rating agencies recognized the financial strength of NCMPA1 and the initiatives undertaken to further improve the Agency’s position for the future,” said ElectriCities CEO Jesse C. Tilton, III. “The upgrade was made possible by the outstanding efforts of ElectriCities staff in assembling the presentation in a matter of weeks. We faced a specific challenge in responding quickly to the ramifications of the subprime mortgage market collapse to mitigate any negative consequences for the Power Agency. Our staff showed excellent teamwork in arising to meet the challenges quickly and effectively. ”


ElectriCities of North Carolina, Inc. (ElectriCities), North Carolina Municipal Power Agency Number One (NCMPA1), North Carolina Eastern Municipal Power Agency (NCEMPA) - More than 70 North Carolina public power communities, municipally owned and operated electric systems, serve more than 500,000 residential, commercial and industrial customers in North Carolina. ElectriCities' members in NC, SC and VA serve more than one million customers. Most have been providing reliable electric service for 100 years or more. ElectriCities is the service organization that provides customer service and safety training, emergency and technical assistance, communications, government affairs and legal services to public power cities. ElectriCities provides management services to the states two municipal power agencies: NCMPA1 and NCEMPA. NCMPA1 has 19 member cities in the western part of North Carolina and NCEMPA has 32 member cities in eastern North Carolina. More information about ElectriCities, the power agencies and public power is available on the Internet at www.electricities.com or at www.ncpublicpower.com.

 


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