Fitch Rts JEA Var-Rate Electric Sys Rev Bnds, Series Three 2007A 'AAA/F1+'.

NEW YORK -- Fitch assigns a rating of 'AAA/F1+' to the $123,480,000 JEA variable-rate electric system revenue bonds, series three 2007A. The long-term 'AAA' rating assigned to the bonds is based on the support of a financial guaranty insurance policy provided by CIFG Assurance North America, Inc., which insures scheduled payments of principal and interest on the bonds, effective as of the date of issuance of the bonds. The insurance policy will extend to the maturity date of the bonds, Oct. 1, 2036. The short-term 'F1+' rating is based on the liquidity support of a standby bond purchase agreement (SBPA) provided by Fortis Bank S.A./N.V., acting through its Connecticut Branch.

The SBPA provides for the payment of the purchase price of tendered bonds during the daily and weekly mode, and is sized to cover the principal portion of the purchase price and 36 days of interest at the maximum interest rate of 12%, based upon a year of 365 days. The SBPA will also be available to pay the principal component of the purchase price upon conversion to a term or flexible rate mode. The SBPA will expire on the stated termination date of Jan. 31, 2017, unless such date is extended, or upon the occurrence of certain events of termination as specified in the SBPA. The short-term rating will expire upon any expiration or termination of the SBPA. The remarketing agent for the bonds is Citigroup Global Markets Inc. The bonds are expected to be delivered on or about Jan. 31, 2007.

The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, auction, term, flexible or fixed rate mode. While bonds bear interest in the daily or weekly rate mode, interest is payable on the first business day of each month, commencing March 1, 2007. During the daily and weekly rate modes, holders have the option to tender their bonds on any business day, following the required prior notice to the tender agent. The bonds are subject to mandatory tender: on the fifth business day prior to the SBPA expiration date; on the date of any SBPA substitution if the rating on the bonds has not been confirmed by each rating agency then rating the bonds; on any mode adjustment date; during the term or flexible rate mode, on any rate adjustment date; during the term mode at the option of JEA after bonds are eligible for optional redemption; at least 20 days after JEA directs the tender agent to call a mandatory tender in order to enable any resolution amendment requiring the consent of bondholders; on the 15th day after the tender agent receives notice from the bank of its intention to terminate the SBPA; and on the business day preceding the effective date of a substitute bond insurance policy. Optional and mandatory redemption provisions also apply to the bonds pursuant to the terms of the authorizing documents.

The proceeds of the bonds will be used to provide moneys for the payment of a portion of the costs of additions, extensions and improvements to JEA's electric system, other than the generating facilities and funds required to refund JEA's electric system revenue bonds, series three 2001C maturing Oct. 1, 2031.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.