Fitch Rates Texas Municipal Power Agency's $36.73MM Rev Rfdg Bonds 'A'; Outlook Stable

NEW YORK--(Business Wire)--
Fitch Ratings has assigned an underlying 'A' rating to Texas
Municipal Power Agency's (TMPA) $36,730,000 revenue refunding bonds,
series 2008. Maturing in 2017, the subordinate lien bonds will be used
to refund callable principal of its 2009 debt service. The bonds are
expected to price June 23, 2008. The Rating Outlook is Stable.

Fitch has also affirmed the outstanding 'A' rating and Stable
Outlook on TMPA's senior power supply revenue bonds and subordinate
lien electric system revenue bonds as well as the 'F1' rating on
TMPA's power supply revenue bonds (commercial paper notes).

The 'A' rating and Stable Outlook is based upon the following
factors:

--Credit profile of TMPA's four members: Bryan (Bryan Texas
Utilities; rated 'A+' with a Stable Outlook by Fitch), Garland
(Garland Power and Light; rated 'A' with a Positive Outlook), and
Greenville (GOs rated 'A+' with a Stable Outlook);

--Long-term, unconditional take-or-pay contracts that are paid as
operating expenses of the member's retail electric systems;

--Strong operating performance of the Gibbons Creek coal-fired
plant serving as a stable, low-cost source of energy;

--Single-unit risk of members receiving the majority of their
energy through the Gibbons Creek coal-fired generator.

The following credit drivers that could affect the rating:

--Members' ability to maintain stable financial profiles in an
environment of increasing energy costs;

--Cost and ultimate effect of potential requirements to reduce
CO2.

TMPA is a joint action agency that provides wholesale power to its
four member cities of Bryan, Denton, Garland, and Greenville, Texas.
TMPA owns and operates the Gibbons Creek station, a coal-fired
generating plant with a net generating capacity of 462 mega watts
(MWs). Through unconditional take-or-pay contracts, each city is
obligated to pay the costs of TMPA, regardless of plant operations, on
the following proportional basis: Garland 47%, Bryan 21.7%, Denton
21.3%, and Greenville 10%.

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.

Fitch Ratings, New York
Yvette M. Dennis, +1-212-908-0668
Karl Pfeil, III, +1-212-908-0516
Christopher Kimble, +1-212-908-0226 (Media Relations)

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