The 'AA' rating on Orlando Utilities Commission (OUC), Fla.'s water and electric system revenue refunding bonds series 2005A reflects OUC's: Consistently strong financial performance, with debt service coverage levels above 2.00x and coverage of total fixed obligations after transfers measuring more than 1.45x; Substantial cash reserves, with well-defined policies governing their use; Competitive rates; Diverse power supply mix, with ownership interest in fossil steam, combustion turbine, and nuclear plants, as well as the use of purchased power contracts; Strong and stable service area economy; and Proactive management team, which has sought to position the commission to effectively compete in the evolving electric marketplace under a supportive regulatory environment. These strengths are mitigated by an above-average debt burden for customers and
