The rating on Naperville, Ill.'s bonds reflects: * A business profile of "3" reflecting favorable wholesale rates from Commonwealth Edison Co. (ComEd), * Breadth of the service area economy, and * Strong debt service coverage and liquidity. The bonds are secured by net system revenues. Naperville's business profile reflects favorable wholesale rates supplied under an all-requirements fixed price contract with ComEd that expires in 2007. Despite Naperville's renegotiation efforts with ComEd, the terms of the contract remain the same. Under the contract, the cost of purchased power is fixed at 95% of ComEd's lowest published rate tariff for large loads. During fiscal 1998, the city's purchased power cost was 43.5 mils per kWh. Retail rates in 1997 for residential and
