The 'A' standard long-term rating and 'A' Standard&Poor's underlying rating (SPUR) on Austin, Texas' prior-lien combined utility system revenue bonds and the 'A-' standard long-term rating and 'A-' SPUR on the subordinate-lien combined utility system revenue bonds and the electric utility system (Austin Energy) revenue bonds reflect the system's: Diversified generation resource mix, including a share of the South Texas Nuclear Project, with owned assets providing 92% of system needs in 2002, limiting exposure to volatile market prices; Competitive rate structure, which includes a fuel-adjustment mechanism that is adjusted annually to reflect fuel prices and Electric Reliability Council of Texas (ERCOT) administrative costs; Solid combined debt service coverage (DSC), which is historically near, or exceeds, 2x on both
