Fitch Rates JEA's (Florida) $125.260MM Electric System Sub Rev Bonds 'AA-'

NEW YORK--(Business Wire)--
Fitch Ratings has assigned an 'AA-' rating to JEA's $125.260 million electric
system subordinated revenue bonds series 2009A. The bonds are expected to price
the week of Jan. 12, 2009 and will finance a portion of JEA's capital plan. In
addition, Fitch has affirmed the following outstanding ratings for JEA:

--Senior electric system revenue bonds at 'AA-';

--Subordinate electric system revenue bonds at 'AA-';

--St. John's River Power Park bonds at 'AA-';

--Bulk Power Supply System Scherer 4 Project revenue bonds at 'AA-';

--Series B taxable commercial paper notes at 'F1+';

--Series C tax-exempt commercial paper notes at 'F1+'.

The Rating Outlook is Stable.

JEA also plans to amend its indenture to adjust the calculation of the debt
service reserve fund for senior lien bonds. For variable-rate senior lien debt
that has been swapped to a synthetic fixed rate, JEA proposes to calculate the
reserve requirement based upon the synthetic fixed rate or the certified rate
established at bond issuance. There is no debt service reserve fund for
subordinate lien bonds.

Support for the 'AA-' rating and Stable Outlook reflects JEA's above average
credit characteristics, including:

--Strong management practices;

--Efficient generating portfolio;

--Competitive retail electric rates;

--Diverse and economically sound customer base;

--Solid financial performance and liquidity.

The following credit drivers could affect JEA's rating:

--A number of standby bond purchase agreements expire over the next six months,
thus JEA's challenge is to manage risks associated with extending or replacing
existing liquidity facilities in this uncertain market. JEA's decisions could
affect its liquidity position, borrowing cost, and debt structure.

--Maintenance of financial metrics (debt service coverage and liquidity)
consistent with the 'AA-' rating, given fuel cost pressures, Florida's economic
challenges, and payments to the city of Jacksonville;

--Ability to recover fuel costs in a timely manner and replenish the rate
stabilization fund;

--Implementation of a large capital plan ($1.7 billion) funded from a balance of
debt and cash.

JEA is an integrated utility providing electric and water service within the
city of Jacksonville, FL, and surrounding portions of three neighboring
counties. JEA serves over 414,000 electric customers, and is one of the largest
public power systems in the United States, with 3,300 megawatts (MW) of net
generating capacity.

For a full review of the credit profile of JEA's electric system, please see
Fitch's Sept. 9, 2008 report titled JEA (FL) Electric Utility System, available
on the Fitch Ratings web site at www.fitchratings.com.

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, 212-908-0668
Karl Pfeil, III, 212-908-0516
or
Media Relations:
Cindy Stoller, 212-908-0526
Email: cindy.stoller@fitchratings.com

Copyright Business Wire 2009