Fitch Rates NPPD's General Rev Bnds 2005 Sers B-1 & B-2 'A+'.

NEW YORK -- Fitch Ratings assigns an 'A+' to Nebraska Public Power District's (NPPD) $73.5 million general revenue bonds, 2005 series B-1. The Rating Outlook is Stable. The 2005B-1 bonds priced Jan. 20, 2005 with UBS Financial Services, Inc. as senior manager. Bond proceeds will be used to refinance selected outstanding general revenue bonds.

Fitch also assigns an 'A+' to NPPD's $140 million general revenue bonds, 2005 series B-2, which are expected to price the week of Feb. 7, 2005. The series B-2 transaction is also a refunding transaction, is interest rate sensitive, and will be senior managed by UBS Financial Services, Inc.

Listed below are NPPD's primary credit strengths and concerns. There have been no major credit developments since Fitch's last review earlier this month. For additional information, see Fitch's Jan. 4, 2005 press release (related to NPPD's $110 million series 2005A) and Fitch's Nov. 11, 2004 credit report (related to NPPD's 2004 series B), both of which are available on the Fitch Ratings web site at www.fitchratings.com.

Credit strengths include:

-- Low-cost generating resources;

-- Flexible future power supply alternatives;

-- Stable financial profile;

-- New extended wholesale contracts with more flexible terms;

-- Continued progress with remediation of its Cooper Nuclear Station (CNS) operations and Nuclear Regulatory Commission (NRC) compliance.

Credits concerns include:

-- CNS operational and compliance issues;

-- Ongoing litigation and regulatory issues that could affect CNS' operations.

NPPD is a public corporation that serves most of rural Nebraska on a retail and wholesale basis. In 2003, NPPD's revenues consisted of 27% retail sales, 43% wholesale sales, 27% off-system sales, and 3% other sales.