ANAHEIM, CA (August 30, 2006) - Fitch Ratings, a leading global rating agency, recently upgraded Anaheim Public Utilities’ electric system to ‘AA-’ from ‘A+’. The ‘AA-’ rating puts Anaheim in an elite class of only a handful of Southern California utilities.

“This is a remarkable achievement for our financial staff,” said Marcie Edwards, Anaheim Public Utilities general manager. “They have been working diligently over the past five years to achieve this goal.”

“Fitch told us that our management strength and a well-crafted, well-communicated financial plan were the key factors in achieving the rating upgrade,” said Mark Mazak, assistant general manager of finance and administration for Anaheim Public Utilities. “They said that our approach of telling them what we're planning to do, and then actually doing it, was a big part of their decision to upgrade.”

According to Fitch, Anaheim’s upgraded rating reflects several positive credit trends that have developed for the utility over the last several years. These credit drivers include:
• A power resource portfolio mix that has maintained its competitive position within the California marketplace;
• The service area’s relative economic stability with some favorable growth and redevelopment occurring over the last several years;
• The addition of new intermediate generation that more efficiently fits Anaheim’s load characteristics;
• Continued improvement to management practices in a complex marketplace, including the assessment of system risks and the continued focus on system reliability;
• Very competitive rates compared to the state average; and
• Fitch’s expectation of continued solid financial performance with a planned increase in revenue-supported funding of ongoing capital needs.

The most recent Anaheim Public Utilities Annual Report is available on this Web site.