NEW YORK (Standard&Poor's) Dec. 22, 2004--Standard&Poor's Ratings Services noted that Aquila Inc.'s (B-/Negative/--) announcement that it has terminated a long-term prepaid gas supply contract will not affect the current ratings or outlook on the company. Aquila terminated the gas prepay commitment with the American Public Energy Agency (APEA) for about $139 million. The APEA gas prepay contract, also referred to as APEA II, is the fourth long-term gas contract that Aquila has terminated since July 2004. The decision to terminate a fourth long-term prepaid natural gas supply contract demonstrates management's commitment to its restructuring plan and allows Aquila to move closer to fully exiting the energy merchant business. However, the event does not constitute a basis
