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TEXAS UTILITIES $797 MILLION SHELF DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 TEXAS UTILITIES $797 MILLION SHELF DEBT RATED 'BBB' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 28 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new $797 million shelf registration of first mortgage and collateral trust bonds is rated 'BBB' by Fitch. The credit trend is stable. With this filing, TUEC now has $800 million in shelf debt available. TUEC plans to refund certain fixed rate securities with the sale of new debt securities or use them for other corporate purposes.
 The 'BBB' ratings on TUEC's outstanding first mortgage bonds, collateralized pollution control revenue bonds, and secured medium-term notes are affirmed. Ratings on TUEC's Connecticut National Bank secured facility bonds and preferred stock are affirmed at 'BBB.'
 The ratings reflect Fitch's expectation that key financial indicators will move to much stronger levels once all of the Comanche Peak nuclear plant is reflected in rates. The company expects to file the next rate case in time to bond rates at Comanche Peak 2's 1993 commercial operation date. The unit is presently going through its hot functional tests and the in-service date remains for the peak season of 1993.
 Lower energy sales in the first and second quarters affected earnings quality protection and cash flow measures. Normalized to exclude a $1.3 billion writeoff, pre-tax interest coverages without allowance for funds used during construction (AFUDC) for the 12 months ended March 31 fell to 1.66 times (x) from 1.71x at year-end 1991. Internal cash flow declined to 13.1 percent vs. 19 percent over the parallel periods.
 Construction expenditures excluding AFUDC were $868 million in 1991. This figure is expected to fall to $740 million in 1992 and $664 million in 1993 before rising to $837 million in 1994. Beyond Comanche Peak Unit 2, which is expected to go into service during the 1993 peak season, the in-service date of two 750 megawatt lignite-fueled Twin Oak units has been scheduled for 1997 and 1998, respectively.
 The last rate case in August 1991 addressed the rate treatment of the 1,150 MW Comanche Peak 1 nuclear unit. An annual increase of $442 million was allowed, but this included a prudence disallowance on Comanche Peak. Because of the rate order, TUEC took a $1.4 billion pre-tax charge against earnings. As a result, based on certain indenture and preferred stock charter requirements, TUEC is precluded from incurring certain forms of debt or issuing preferred stock for the 12 months after the September 1991 charge against earnings.
 -0- 7/28/92
 /CONTACT: Anne Faber of Fitch, 212-908-0566/
 (TXU) CO: Texas Utilities Electric Co. ST: Texas IN: UTI SU: RTG


SM -- NY079 -- 4201 07/28/92 15:23 EDT
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Date:Jul 28, 1992
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