PUBLIC SERVICE ELECTRIC AND GAS COMPANY $150 MILLION NOTES RATED 'A'
CHICAGO, Jan. 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of A' to Public Service Electric and Gas Company's (PSE&G) issuance of $150 million 6.875 percent notes due 2003, and $100 million six percent first and refunding mortgage notes due 1998. The notes were issued from a recently filed shelf registration. PSE&G continues to benefit from a wide array of strengths. However, debt protection measures will be under pressure in the foreseeable future. The $295 million rate settlement approved by the New Jersey Board of Regulatory Commissioners came in well under the $622 million increase originally requested. The two most important factors were a relatively low allowed return on common equity (12 percent) and a significantly lower level of depreciation to be recovered through rates. In the near term, the company will need substantial new money financing to support its capital expenditure plans. Additional equity contributions from parent Public Service Enterprise Group as well as cost cuts, are expected. Cost control efforts will present a challenge given the concentration of operating and maintenance expense in nuclear operating costs. PSE&G provides electric and gas service to a diverse area of New Jersey, including the state's six largest cities. The company owns shares in five nuclear units. -0- 1/26/92 /CONTACT: William A. Abrams, CFA of Duff & Phelps, 312-368-3112/ (PEG)
CO: Public Service Electric and Gas Co. ST: New Jersey IN: FIN SU: RTG
SH -- NY085 -- 9153 01/26/93 14:29 EST
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|Date:||Jan 26, 1993|
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