The reputation strength of the US electric power industry has shown clear signs of deterioration over the last two years, say analysts at Rating Research LLC (RRC), the leading reputation rating agency.

Accordingly, RRC announced that it has lowered its Reputation Strength Ratings on seven utilities: Duke Energy Corporation (to A from AA), TXU Corporation (to BBB from A), Exelon Corporation (to BBB from A), Edison International (to BB from BBB), Public Service Enterprise Group Incorporated (to BB from BBB), Xcel Energy Inc. (to BB from A), and Consolidated Edison, Inc. (to BB from BBB).

The agency's assessment of the industry and its Reputation Strength Ratings are based on in-depth interviews recently conducted with more than 350 senior industry executives and financial analysts that follow the industry. The results of this year's study were assessed in comparison with a similar baseline survey completed in 2002.

Citing the fallout from high-profile financial restatements, project cancellations, the blackout of 2003, and increased skepticism over utility senior management, RRC says that its average Reputation Strength Ratings on the industry have remained generally stable overall at the medium-quality BBB rating level; however, a preponderance of downgrades has pushed the industry average down to mid-BBB, from a high-BBB level following RRC's 2002 study.

Among the most significant new developments for 2004, RRC rating committee chairperson Dory Gasorek cites "the overall decline in respondents' assessments that they would be willing to invest in electric utilities or support them in times of controversy." At the same time, adds Gasorek, "this year's study points clearly to the increasing importance of CEO leadership as a driving factor underpinning a utility's perception as an excellent company."

Despite industry turbulence over the period, RRC reports that four well-positioned companies have shown significant improvement in reputation strength. RRC has upgraded its ratings on FPL Group, Inc. (to AA from A), Dominion Resources, Inc. (to A from BBB), PPL Corporation (BBB from BB), and PG&E Corporation (to BB from CCC).

Reputation Strength Ratings on six electric power companies have been maintained: The Southern Company (AA), Progress Energy, Inc. (A), American Electric Power, Inc. (A), Entergy Corporation (BBB), FirstEnergy Corp. (B), and CMS Energy Corporation (B). In addition, Calpine Corp. has received a BBB Reputation Strength Rating.

RRC, a joint venture between The Ratrix Group and Opinion Research Corporation (NASDAQ), assigns Reputation Strength Ratings to leading companies and publishes those rating opinions as a public service.

See RRC's Website for a full list of current electric power company ratings, a summary rationale for the rating on each company, and Reputation Strength Rating definitions at www.ratingresearch.com; or contact Ashley Burleson at 813-837-6166. In addition, RRC offers clients detailed, two-point-in-time survey data in spread-sheet form for each rated electric utility, with accompanying analysis using RRC's proprietary Reputation Strength Model.

RRC, a joint venture between The Ratrix Group and Opinion Research Corporation (NASDAQ: ORCI), assigns Reputation Ratings to leading companies and publishes those rating opinions as a public service. Ratings and industry highlights may be found at RRC's website, www.ratingresearch.com.