The affirmation of the underlying rating (SPUR) of 'A+' on Tacoma, Wash.'s bonds reflects continued credit strengths, despite escalating purchased power costs. The return to a stable outlook reflects the financial pressure created from volatile market prices experienced by all utilities in the Northwest. This exposure is heightened for Tacoma as a result of its sale of the Centralia coal plant in May 2000, which had to be replaced by market purchases, and the lower than projected production of its own hydroelectric assets due to low water levels. The rating affirmation, however, reflects Standard&Poor's confidence that Tacoma's Board and management team will, as they have in the past, continue to act in a timely manner to respond to
