Printer Friendly

CENTRAL MAINE POWER COMPANY $75 MILLION GENERAL AND REFUNDING MORTGAGE BONDS RATED 'BBB+' BY DUFF & PHELPS

 CHICAGO, Feb. 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (Triple-B-Plus) to Central Maine Power Company's issuance of $75 million of general and refunding mortgage bonds from an outstanding shelf. A balance of $135 million of general and refunding mortgage bonds remain available for sale. The 7.05 percent bonds were priced at 97.744 to yield 7.30 percent, and mature March 1, 2008. Proceeds will be used to redeem outstanding general and refunding mortgage bonds and preferred stock.
 The Maine Public Utilities Commission (MPUC) recently approved a stipulated agreement allowing Central Maine Power to recover its electric rate adjustment mechanism (ERAM) deferrals and fuel cost adjustment (FCA) deferrals through increased rates, effective July 1, 1993. In return, Central Maine Power withdrew its request for approximately $30 million in temporary rate relief, and agreed to an 11.25 percent cap on return on equity for 1992. Earnings in excess of 11.25 percent up to $5.9 million, will be used to reduce ERAM accruals. Earnings above the $5.9 million excess will be applied against 1993 operating and maintenance expenses.
 Importantly, the agreement provides for ultimate recovery of all remaining ERAM and FCA accruals. ERAM accruals will be recovered within two years of the end of the period in which the accruals were recorded, and FCA deferrals are to be recovered by July 1996. The combined effect will increase revenues approximately $41.5 million annually. Failure to recover such amounts would severely limit the company's flexibility and impair its creditworthiness.
 The continuation of the ERAM (per the stipulation agreement the ERAM will expire December 1, 1993) or alternative decoupling mechanisms will be addressed in the company's base-rate filing. Central Maine Power plans to file for an $95 million rate increase in March 1993.
 -0- 2/19/93
 /CONTACT: John C. Dell of Duff & Phelps, 312-368-3161/
 (CTP)


CO: Central Maine Power Company ST: Maine IN: UTI SU: RTG

SM -- NY026 -- 8336 02/19/93 11:00 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 19, 1993
Words:333
Previous Article:DUFF & PHELPS: LONG ISLAND LIGHTING COMPANY $142 MILLION DEBENTURES RATED 'BBB-'
Next Article:LIBERTY BANCORP, INC. COMPLETES STOCK REPURCHASE PROGRAM
Topics:


Related Articles
DUFF & PHELPS: CENTRAL POWER AND LIGHT COMPANY $125 MILLION FIRST MORTGAGE BONDS 'A'
DUFF & PHELPS: ILLINOIS POWER COMPANY $235 MILLION "NEW MORTGAGE BONDS" RATED 'BBB'
DUFF & PHELPS: COMMONWEALTH EDISON COMPANY $130 MILLION FIRST MORTGAGE BONDS, DUE 1998 RATED 'BBB'
DUFF & PHELPS: COLUMBUS SOUTHERN POWER $200M FIRST MORTGAGE BONDS, FIRST MORTGAGE BONDS DESIGNATED SECURED MEDIUM-TERM NOTES RATED 'BBB'
DUFF & PHELPS RATES TEXAS UTILITIES ELECTRIC COMPANY
PHILADELPHIA ELECTRIC COMPANY $500 BILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'BBB+' BY DUFF & PHELPS
DUFF & PHELPS ADDS CENTRAL MAINE POWER COMPANY TO RATING WATCH -- UNFAVORABLE
DUFF & PHELPS: CENTRAL MAINE POWER COMPANY $150 MILLION GENERAL AND REFUNDING MORTGAGE BONDS (SHELF) RATED 'BBB-'
DUFF & PHELPS CREDIT RATING CO. REMOVES CENTRAL MAINE POWER COMPANY'S CREDIT RATINGS FROM RATING WATCH -- DOWN

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters