The rating and 'somewhat-above-average' business position on Tacoma, Wash.'s (Tacoma Public Utilities) bonds reflects: * A competitive system rate of 3.35 cents per kwh, which is 16% lower than the state average and 56% lower than the regional average; * Increased supply flexibility as a result of an amended contract with Bonneville Power Administration (BPA; 'AA-' rating; stable outlook); * Revised contracts with Tacoma's largest industrial customers, lowering the utility's costs and reducing its business risk; * Continued solid financial performance; and * A stable (Tacoma G.O. rating A+'; stable outlook), but somewhat concentrated, local area economy. Credit risks include Tacoma's reliance on hydroelectric sources and related concerns with project relicensing. The 1996 proceeds will refund outstanding 1991 bonds. Until
