The 'A-1+' rating on Philadelphia, Pa.'s Philadelphia Gas Works tax exempt commercial paper series E is based on a LOC issued severally by The Bank of Nova Scotia ('A-1+'), Wachovia Bank N.A. ('A-1+'), and JPMorgan Chase Bank N.A. ('A-1+') where they are each obligated to pay 33.5% of each drawing. The LOC provides $100 million of coverage on principal plus interest on the notes. The LOC will initially expire on May 29, 2007, unless extended or earlier terminated in accordance with its terms. The fiscal agent is instructed not to issue notes whose principal and interest would exceed the current coverage on the LOC. The maximum interest rate on the notes is 9%. The notes may be issued in maturities
