NEW YORK (Standard&Poor's) Dec. 22, 2004--Standard&Poor's Ratings Services noted that Aquila Inc.'s (B-/Negative/--) announcement that it has agreed to exit the LSP Batesville Funding Corp. tolling commitment will not affect the current ratings or outlook on the company. Aquila has agreed to assign its obligation to purchase power under the tolling contract with LSP Batesville to South Mississippi Electric Power Association (SMEPA), pending regulatory approval. Under the terms of this restructuring, SMEPA will pay Aquila $16.25 million, subject to certain adjustments. The power that Aquila was purchasing from LSP Batesville under the tolling commitment was being sold to SMEPA under a separate agreement. Thus, the event does not constitute a basis for rating actions because Aquila
