Regulated electric and gas operations provide a relatively stable source of cash flows, Pending asset sales may contribute to material debt reduction, which is likely to alter the company's debt maturity schedule and reduce refinancing risk, and Pending gas utility asset sales will reduce the company's working capital requirements, which should improve liquidity. The company is aggressively leveraged, High interest expense and cash losses at its merchant services segment challenge the company's ability to generate positive funds from operations, and Pending litigation related to the South Harper peaking facility could adversely affect the timing and magnitude of future cash flows. The ratings on diversified energy company Aquila Inc. are on CreditWatch with positive implications reflecting the company's announcement that it
