DUFF & PHELPS: KENTUCKY POWER COMPANY $100 MILLION SECURED DEBT SECURITIES RATED 'BBB+'
CHICAGO, May 5 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (Triple-B-Plus) to Kentucky Power Company's shelf registration for $100 million of first mortgage bonds and/or first mortgage bonds, designated medium-term notes. Proceeds will be used for refunding and repayment of debt and for construction. Kentucky Power Company is a member of the American Electric Power (AEP) System and Power Pool. The company owns and operates the 1,060 mw Big Sandy Plant at Louisa, Kentucky and has a long-term unit power agreement with affiliate AEP Generating Company to purchase 390 mw of capacity from the Rockport Plant. Increased competition and the weak economy have limited off-system sales in recent years. External new money financing will be required for construction expenditures through 1996, mostly for transmission and distribution improvements. Expenditures for compliance with Clean Air Act legislation should be minimal. The company plans to switch from high- to low-sulfur coal at its solely owned plant. An increase in low-sulfur coal costs may substantially increase fuel costs by the end of Phase II. As a member of the AEP Power Pool, Kentucky Power also will be affected by the Clean Air compliance plans for the AEP System, which includes the installation of scrubbers at Ohio Power's Gavin station. However, the impact on Kentucky Power should be relatively small. Kentucky Power Company, a subsidiary of American Electric Power Company, provides electric service to 158,000 customers in eastern Kentucky. -0- 5/5/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co. 312-368-3161/ (AEP)
CO: Kentucky Power Company ST: Kentucky IN: UTI SU: RTG
LD -- NY093 -- 5070 05/05/93 17:16 EDT
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|Date:||May 5, 1993|
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