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NORTH CAROLINA EASTERN MUNI PWR AGENCY $540 MIL REVS 'A' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 22 /PRNewswire/ -- North Carolina Eastern Municipal Power Agency's $540 million power system revenue bonds, refunding series 1993 C, series 1993 D, and series 1985 G, are rated "A" by Fitch. Approximately $3.1 billion outstanding "A" parity revenue bonds are affirmed "A". The credit trend is declining. The bonds are scheduled to sell through negotiation the week of July 26 by a Smith Barney, Harris Upham & Co. Inc. syndicate.
 Faced with operating problems at the Brunswick nuclear plant and concerns about the agency's ability to maintain rate competitiveness, management has embarked on an aggressive program to strengthen the agency's industry position. The program is intended to increase performance and reliability of the Brunswick units, reduce operating inefficiencies, and hold down the amount of future rate increases. The declining credit trend reflects the seriousness of the issues confronting the agency but also recognizes efforts by management to mitigate these risks.
 The agency demonstrates a balanced approach to power supply planning, helped by generally good performance by most of its generating facilities, backup power arrangements with Carolina Power & Light Co. (CP&L), and the development of the new peaking project. The recent settlement of the Harris lawsuit with CP&L is positive and will help to moderate increases in wholesale electric rates to the member systems. Also, CP&L's recent purchase of sulfur dioxide allowances should allow the company to delay installation of expensive scrubbers at certain units until 2005. Economic figures at the participant level continue to benefit from diversification away from agriculture and textiles. However, an additional risk is the large percentage of revenues (more than 60 percent) among the five largest participants.
 -0- 7/22/93
 /CONTACT: Alan Spen, 212-908-0594 or Susan M. Courtney, 212-908-0503, both of Fitch/


CO: North Carolina Eastern Municipal Power Agency ST: North Carolina IN: UTI SU: RTG

LG -- NY087 -- 4720 07/22/93 15:58 EDT
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Publication:PR Newswire
Date:Jul 22, 1993
Words:315
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