NEW YORK (Standard&Poor's) Dec. 19, 2005--Standard&Poor's Ratings Services said today that Aquila Inc.'s (B-/Watch Pos/B-3) announcement that it had reached an agreement to sell its two Illinois merchant gas-fired power plants to Ameren UE (BBB+/Watch Neg/A-2) for $175 million (or roughly $205 per kilowatt) favors Aquila's credit quality, but does not affect the ratings on the company. The sale, which is expected to close in the first half of 2006 once regulatory approvals have been finalized, will generate cash proceeds in excess of Standard&Poor's previous expectations. Overall, the sale should strengthen the company's liquidity position and reduce the need for external funds for contract restructurings or utility build-out in Missouri. Loss of the plants
