SAN FRANCISCO Oct. 21 2008

Liquidity requirements of new nuclear power plants in the U.S. will be a key consideration in Standard & Poor's Ratings Services' credit analysis of the facilities, according to a report published today on RatingsDirect entitled "For New U.S. Nuclear Power Plants, Liquidity Requirements Could Be Substantial."

The key consideration is the potential for long, safety-related outages at nuclear plants to create substantial liquidity needs. We believe that nuclear power projects will need large amounts of liquidity, unless the industry can maintain its operating track record of the past decade or so, during which capacity factors have risen to more than 90% from the low 70s, fuel outages are fewer and much shorter, and operating and maintenance expenses are down.

"In the article, we attempt to evaluate how much liquidity will be required at any given rating level if extended safety-related outages again become a more frequent occurrence. New nuclear projects will have to put contingent liquidity facilities in place that could provide these levels of liquidity if needed," said Standard & Poor's credit analyst Swami Venkataraman.

Although recent operating history has been very strong, new technologies with no operating track record pose their own risk. We expect one year and 18 months of liquidity for a nuclear project using a new technology to achieve a rating in the 'BB' and 'BBB' categories, respectively, in the form of cash, bank revolving lines of credit, or guarantees from a stronger parent.

We also recognize that by the time new reactors go into operation in 2016 or 2017, we would have had the benefit of another decade's worth of operating experience on existing nuclear units, which could lower the liquidity requirement if the strong performance of nuclear plants continues, although we expect that some "new technology premium" would remain.

The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; under Credit Ratings in the left navigation bar, select Find a Rating, then Credit Ratings Search. Members of the media may request a copy of this report by contacting the media representative provided.