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POTOMAC EDISON 7.75 PERCENT FIRST MORTGAGE BONDS RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 10 /PRNewswire/ -- Potomac Edison Co.'s $45 million 7.75 percent first mortgage bonds due 2023 are rated 'AA-' by Fitch. The issue is a takedown from a previously rated shelf registration. The credit trend is stable.
 The rating reflects sound credit fundamentals, the operating and financial strengths of its parent, Allegheny Power System, Inc., and supportive regulatory treatment for Clean Air Act (CAA) related expenditures in each of Potomac Edison's three jurisdictions. Rating maintenance also assumes constructive treatment for attrition-related rate increases.
 Potomac Edison's revenues are regulated by Maryland (70.1 percent), West Virginia (15.3 percent), and Virginia (14.6 percent). Regulators in all jurisdictions determined that the Allegheny system's acid rain compliance plan is prudent. Treatment by Maryland and West Virginia regulators was particularly constructive. The Maryland Public Service Commission (PSC) authorized the recovery of capital costs associated with CAA investments through a surcharge. West Virginia permitted similar treatment of capital costs with recovery through the energy clause. The Virginia State Corporation Commission granted the rate base recognition of construction work in progress following an annual information filing. Potomac Edison filed a request for a $23 million rate increase unrelated to acid rain expense recovery in Maryland in July. A decision is expected this month.
 Allegheny Power plans to comply with 1990 CAA Phase 1 requirements by building three scrubbers at its mine-mouth Harrison plant for $726.6 million, including allowance for funds used during construction. Potomac Edison's share of these costs is $233.6 million.
 -0- 2/10/93
 /CONTACT: Josephine Zeppieri, CFA of Fitch, 212-908-0575/
 (AYP)


CO: Potomac Edison Co. ST: Maryland IN: UTI SU: RTG

LR -- NY050 -- 5149 02/10/93 12:21 EST
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Date:Feb 10, 1993
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