The 'AA' rating on Colorado Springs, Colo.'s utility system (CSU) subordinate-lien improvement and refunding revenue bonds series 2001A reflects the following strengths: Strong financial performance with high debt service coverage levels and robust liquidity; A diverse revenue stream from the electric, gas, water, and wastewater systems--all of which are self-supporting; A diverse electric resource mix of coal, hydroelectric, and gas, as well as market purchases; Competitive rates; A prudent and proactive management team that has adjusted rates to reflect operating expenses, continually improved processes, and structured its organization to ensure that CSU is very competitive and is well-prepared for the future deregulated environment; and A strong local area economy (Colorado Springs GO rated 'AA'). These strengths are tempered by: A
