The ratings on Tacoma Power's electric system revenue bonds reflect the utility's strong regulatory support for credit quality, proactive management, competitive rates, and average operating risk of its power supply, distribution, and telecommunications operations. Tacoma's commitment to maintaining its credit quality and historically strong financial profile are the key credit strengths underlying its 'A+' SPUR. Its board and management have demonstrated their support of credit quality through prompt and judicious exercise of their rate-setting authority, especially during 2000 and 2001. In response to spiking purchase power costs, the board quickly implemented a 50% rate surcharge in December 2000, limiting power cost deferrals to only $58 million. In September 2001, the board replaced the 50% surcharge with a permanent 30% rate
