PUBLIC SERVICE COMPANY OF OKLAHOMA $50 MILLION FIRST MORTGAGE BONDS RATED 'AA'
CHICAGO, June 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of AA' (Double-A) to Public Service Company of Oklahoma's proposed offering of $50 million of first mortgage bonds. Proceeds will be used for refunding. Public Service Company of Oklahoma's (PSO) marketing programs, cost control, reduced leverage and refundings of higher cost debt should benefit earnings and coverage levels longer term. The company has an adequate capital structure. Construction is manageable and new money financing is expected to be limited over the next several years. Oklahoma law requires a review of rates at least once every five years. In October 1992, PSO filed for a rate increase of $46.8 million (7.4 percent), its first increase in five years. However, changes in commissioners and key staff personnel add to regulatory uncertainty. Negative recommendations from the staff and State Attorney General have been directed at Oklahoma Gas & Electric. In January 1993, the company requested an interim rate increase equal to the full amount of its permanent rate request. In March the Commission granted interim relief of $10.1 million. It appears an order on the permanent rate increase may not be issued until 1994. Parent Central and South West Corporation recently announced plans to acquire El Paso Electric Company. As currently structured, this transaction should not impact any of the Central and South West operating subsidiaries. Public Service Company of Oklahoma, a subsidiary of Central and South West Corporation, provides electric service in eastern and southwestern Oklahoma. -0- 6/1/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (CSR)
CO: Public Service Company of Oklahoma ST: Oklahoma IN: UTI SU: RTG
LR -- NY060 -- 3981 06/01/93 12:53 EDT
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|Date:||Jun 1, 1993|
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