DUFF & PHELPS: DUKE POWER COMPANY $150 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'AA-'
CHICAGO, July 20 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA-' (Double-A-Minus) to Duke Power Company's (NYSE: DUK) proposed offering of $150 million 40-year, first and refunding mortgage bonds. Proceeds will be used for refinancing and capital expenditures. Duke Power has strong fundamentals which include excellent generating plant operating performance, competitive rates, reasonable regulation, and a relatively healthy service territory. Management has maintained close control on costs contributing to steady financial ratios. Further productivity improvements and sales growth should reflect positively on future earnings. The company continues to emphasize demand-side management programs to help defer the need for additional capacity. The company's large fixed costs under its take-or-pay contract for power from the Catawba nuclear plant are scheduled to decline and the related accumulated deferred costs are expected to be recovered over the next several years. Capital expenditures will increase temporarily for the accelerated replacement of steam generators at three nuclear units due to stress corrosion cracking. The McGuire Unit 1 generator is scheduled for replacement by 1995, Catawba Unit 1 in 1996, and McGuire Unit 2 in 1997. Duke Power Company serves approximately 1.7 million customers in a growing service territory covering 20,000 square miles in North Carolina and South Carolina. -0- 7/20/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (DUK)
CO: Duke Power Company ST: North Carolina IN: UTI SU: RTG
MP -- NY053 -- 6772 07/20/93 11:45 EDT
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|Date:||Jul 20, 1993|
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