GARLAND, Texas, March 17, 2005 -- Standard & Poor’s and Fitch Ratings have assigned bond ratings of A+ and A respectively to $19.69 million in electric utility system revenue bonds, series 2005 to be issued by the City of Garland.

Both agencies rated the outlook of the municipal electric system as stable. Standard & Poor’s specifically cited that their rating reflected the city’s “adequate financial performance, including sufficient coverage of all obligations and liquidity, which is significantly boosted by a sizable rate mitigation fund; and strong and diverse economy with above average wealth in customer base and participation in the Dallas MSA.” Fitch stated that their rating also takes into account “GP&L’s active participation on several state power association boards including Electric Reliability Council of Texas (ERCOT) and the Texas Public Power Association.”

Proceeds from the sale of the bonds will fund improvements and extensions to GP&L’s transmission and distribution system. “We’re understandably proud of the very good ratings assigned by such prestigious rating agencies,” said GP&L Electric Director Jim Harder. “Continued improvements to the system are an integral component of our Capital Improvements Program, and will insure the continuation of our goal of providing the highest quality electric service at the lowest possible cost,” concluded Harder.

Standard & Poor’s stable outlook for GP&L cited the expectation that the combination of the system’s solid long-term identification of its capital and operational needs, prudent management and use of rates and special funds, and the decision not to opt into opening the service area to retail electric service competition will, “continue to provide stable revenues and appropriate coverage of all electric system obligations.” GP&L provides electric service to approximately 68,000 customers, primarily residential and commercial. The utility serves 85% of the electric customers within the city and provides wholesale power to other cities.