ANAHEIM, CA (June 18, 2008) - Standard & Poor’s and Fitch Ratings Services, two leading global rating agencies, recently upgraded Anaheim Public Utilities’ water system to AAA and AA+ ratings, respectively.

The ratings put Anaheim in an elite class of only a handful of Southern California utilities. “This is a remarkable achievement for both our financial and water systems staff,” said Marcie Edwards, Anaheim Public Utilities general manager. “Both of these divisions have been working diligently over the past several years to achieve this goal.”

“Per Standard & Poor’s, the upgraded rating was based on the city’s consistently strong finances and a diverse water supply,” said Ed Zacherl, assistant general manager of finance and administration for Anaheim Public Utilities. “They added that the city serves a stable customer base.”

“These ratings will greatly enhance our ability to finance bonds to improve the water system’s ongoing capital plan,” said Don Calkins, assistant general manager of water systems for Anaheim Public Utilities, “with a focus on rehabilitating and replacing aging infrastructure, including replacement of an older reservoir and drilling of new wells.”

According to Fitch, Anaheim’s AA+ rating reflects the water system’s credit strengths that include:

• Diversity and cost stability in its water supply;
• A rate structure that provides cost recovery and transparency in purchased water costs;
• Low water rates for the region; Strong management and planning practices; Low debt levels;
• Strong projected debt service and liquidity levels; and
• A mature service territory with modest customer growth.

The water system serves the City of Anaheim as well as a small portion of unincorporated area outside the city. The system currently serves a population of 350,000 and has sufficient supply to serve the city’s anticipated build-out population of 400,000. The system has a diverse mix of customers with no single customer accounting for more than 4 percent of revenues. Anaheim water rates are among the lowest of the 33 agencies serving water to Orange County cities.

The most recent annual report and water quality report for Anaheim Public Utilities may be viewed at www.anaheim.net. Click on Public Utilities, then Your Community.