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PACIFIC GAS & ELECTRIC COMPANY $2 BILLION SHELF REGISTRATION RATED BY DUFF & PHELPS

 CHICAGO, June 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to Pacific Gas & Electric Company's $2 billion shelf registration. A rating of `A' (Single-A) is applicable to the first and refunding mortgage bond portion and a rating of `A-' (Single-A- Minus) to the unsecured debt portion of the registration. Proceeds will be used for capital expenditures and repayment or retirement of outstanding debt or preferred stock.
 Longer term, Pacific Gas & Electric's credit protection measures are expected to remain satisfactory. The company's performance has been enhanced by excellent operations at the Diablo Canyon nuclear plant. While the company benefits from excellent plant performance under the December 1988 settlement, which excluded Diablo Canyon from rate base, coverage levels will depend on the continuation of high performance levels at Diablo.
 Pacific Gas & Electric's management has taken several steps to better prepare the company for a more price sensitive, competitive environment. In February, the company announced it would eliminate 3,000 positions by 1995. In April, Pacific Gas & Electric announced it would freeze retail electric rates through the end of 1994, forego recovery of certain revenue adjustment entitlements, and file an economic stimulus rate to attract and maintain businesses in the service territory.
 The regulatory environment in California shows increasing signs of uncertainty. The California Public Utilities Commission's December 1992 order in Pacific Gas & Electric's general rate case failed to recognize the compensatory equity necessary for its substantial purchased power obligations.
 Importantly, the ratings assume satisfactory treatment of pending gas cost regulatory action, reasonable settlements of Canadian gas take-or-pay issues, and recovery of such costs.
 Pacific Gas & Electric is one of the nation's largest investor-owned electric and gas utilities, serving 11.8 million people in northern and central California.
 -0- 6/22/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
 (PCG)


CO: Pacific Gas & Electric Company ST: California IN: UTI SU: RTG

PS -- NY031 -- 4493 06/22/93 10:44 EDT
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Publication:PR Newswire
Date:Jun 22, 1993
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