GARLAND, Texas, March 10, 2006 – Fitch Ratings has assigned an “A” bond rating for $25.97 million in electric utility system revenue bonds, series 2006, to be issued by the City of Garland for Garland Power & Light (GP&L). Fitch also affirmed the "A" rating on GP&L’s outstanding electric utility system revenue bonds.

According to Fitch, "The rating reflects GP&L's steady financial performance, reasonable capital plan, market-based retail rates, and low-cost power resource mix." Additionally, the rating is supported by "GP&L's strong service territory economy, characterized by a stable manufacturing sector, good commercial and retail development, and above-average wealth indicators."

GP&L is also recognized for its "management's history of pursuing operational strategies that are generally conservative and balanced." Fitch states that this style of operations is "especially important given the increasingly competitive Texas retail electricity market and the pervasive effect natural gas prices have on the regional market clearing price of power."

The bonds will raise funds to pay for improvements to GP&L’s transmission and distribution system.

"We’re pleased that Fitch has assigned such a good rating to our bonds," said GP&L Electric Director Jim Harder. "Our goal is to provide the highest quality electric service at the lowest possible cost. The Capital Improvement Program, which is partially funded by the bonds, helps us achieve this goal."

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.