NEW YORK (Standard&Poor's) May 13, 2003--Standard&Poor's Ratings Services said today that Aquila Inc.'s (B/Negative/--) announcement that it has terminated its 20-year tolling commitment with Acadia Power Partners LLC for $105.5 million is a positive event for the company's credit quality. The termination of the tolling agreement demonstrates management's commitment to its restructuring plan and allows Aquila to move closer to fully exiting the energy merchant business. In addition, the termination agreement returns to Aquila $45 million in posted collateral and eliminates $843 million in payments due to Acadia over the remaining term of the tolling agreement, thus alleviating some of Aquila's liquidity concerns going forward. The event does not constitute a basis for rating actions because
