NEW YORK (Standard&Poor's) April 13, 2004--Standard&Poor's Ratings Services said today that Aquila Inc.'s (B-/Negative/--) approved $37.5 million rate increase from the Missouri Public Service Commission will not affect the company's ratings or outlook. Approximately half of the rate settlement is an electric base rate increase and the other half provides for the implementation, for a two-year period, of an interim energy charge (IEC). The IEC reflects energy costs in excess of those that are to be recovered in base rates. The rate increase for Aquila's 282,000 electric customers in Missouri is an important part of Aquila's plan to improve its financial position. The event does not constitute the basis for a rating action, however, because the
