CT Light & Pwr Mtg Bnds Rtd BB+ by S&P, Put on Watch,Neg.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 6/19/97-- Standard & Poor's today has assigned its double-'B'-plus rating to Connecticut Light and Power Co.'s first and refunding mortgage bonds series 1997B due June 1, 2002. The rating is placed on CreditWatch with negative implications. The outstanding ratings of Connecticut Light and Power, a Northeast Utilities Northeast Utilities (NU) is a publicly-traded, Fortune 500 energy company headquartered in Berlin, Connecticut, with several regulated subsidiaries offering retail electricity and natural gas service to more than 2 million customers in New England. unit, were initially placed on CreditWatch April 8, 1996. The CreditWatch placement reflects the negative impact on financial flexibility and debt protection measures of the prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. outage out·age n. 1. A quantity or portion of something lacking after delivery or storage. 2. A temporary suspension of operation, especially of electric power. of the Millstone millstone Either of two flat, round stones used for grinding grain to make flour. The stationary bottom stone is carved with shallow grooved channels that radiate from the centre. The upper stone rotates horizontally, and has a central hole through which grain is poured. Nuclear Station, which is under intense Nuclear Regulatory Commission Nuclear Regulatory Commission (NRC), an independent U.S. government commission, created by the Energy Reorganization Act of 1974 and charged with licensing and regulating civilian use of nuclear energy to protect the public and the environment. (NRC NRC abbr. 1. National Research Council 2. Nuclear Regulatory Commission Noun 1. NRC - an independent federal agency created in 1974 to license and regulate nuclear power plants ) scrutiny, and concerns over Northeast Utilities' competitive position. Also, in May, electric industry restructuring proceedings collapsed in Connecticut, and legislation now appears unlikely until next year at the earliest. Standard & Poor's had viewed the evolving restructuring initiatives by the state legislature A state legislature may refer to a legislative branch or body of a political subdivision in a federal system. The following legislatures exist in the following political subdivisions: The three Millstone Units remain out of service pending an NRC review of management's ability to address numerous operational and design concerns. The Connecticut Department of Public Utility Control also has undertaken a review of Connecticut Light and Power's management of nuclear operations between 1990 and 1995. The company expects to spend roughly $30 million on average for monthly replacement power costs in 1997. As a result, Standard & Poor's remains concerned over the erosion of Connecticut Light and Power's cash flow position, which will limit the utility's ability to reduce current high debt levels, despite the suspension of the common dividend at Northeast Utilities. Connecticut Light and Power owns 81% of Millstone Units 1 and 2 and 53% of Millstone Unit 3. Management projects that it will have two units ready for the NRC to review for restart during the second half of 1997, and the final unit in early 1998, but the challenge of complying with NRC requirements and restarting the nuclear plants is enormous. The NRC placed the Millstone Station on its watch list in January 1996. Millstone Units 1, 2, and 3 have been out of service since November 1995, February 1996, and March 1996, respectively. The Millstone Station accounts for about 25% of Northeast Utilities' power supply. Connecticut Light and Power's relatively weak business profile reflects the poor performance of Millstone, asset concentration, a sluggish local economy, and high rates. These weaknesses are partially offset by traditionally supportive Connecticut regulation, a generally affluent service area, and modest industrial concentration. -- CreditWire CONTACT: Raymond Leung, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-1621 |
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