The rating on Tacoma, Wash.'s conservation resource project bonds reflects Bonneville Power Administration (BPA), Ore.'s obligation to pay the debt service on these bonds under long-term contractual agreements. The positive outlook reflects: BPA's very competitive rates--the result of low cost hydroelectric energy resources, which offset the very high costs associated with the nuclear assets through blended rates, resulting in oversubscription for BPA's resources during the 2002-2006 contract period; BPA's very strong cash reserves, which mitigate business risk, particularly given the recent high prices and future cost uncertainty of West Coast power; and An integrated fish and wildlife plan, which has received extensive regional review and comment, resulting in fish remediation costs that are expected to be manageable during the next
