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TEXAS UTILITIES ELECTRIC $144.5 MILLION SECURED FACILITY BONDS RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 18 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new shelf registration of $144.5 million secured facility bonds is rated 'BBB-' by Fitch. Proceeds from the sale will be used by the lessor to refund principal amounts outstanding of secured facility bonds due July 1, 1995, 2000, 2003, and Jan. 1, 2015, issued Aug. 18, 1988. The credit trend is stable.
 The bonds will be issued by Shawmut Bank Connecticut, N.A. as owner trustee (lessor) and are without recourse to the general credit of the lessor or the owner participant and will not be direct obligations of, or guaranteed by, Texas Utilities Electric Co., the lessee. Payment of principal and interest is secured by a net lease, expiring June 30, 2015, of the Permian Basin and the Morgan Creek facilities which consist of three and six, respectively, gas-fired combustion turbine peaking units. This unconditionally obligates TUEC to make payments at least sufficient to service the bonds.
 The rating reflects Fitch's expectations that key financial measurements will improve significantly once the Comanche Peak nuclear plant is substantially reflected in base rates.
 In January, the company filed a $760 million, or 15.3 percent, rate increase which reflects, among other items, the recovery of the remaining investments associated with both Comanche Peak units. Unit 1 began commercial operation in 1990, Unit 2 is expected to commence full commercial operation this summer. In April, the staff of the Public Utility Commission of Texas (PUC) initially recommended a rate increase, exclusive of Comanche Peak prudence, of $580 million or 11.7 percent. Subsequent testimony filed by PUC staff proposed a prudency rate base exclusion of about $462 million of Comanche Peak investment. A full staff rate recommendation is expected to be filed in late July. The company will aggressively contest these staff recommendations. The company can place the requested increase into effect on the bond and subject to refund at the beginning of August. Final PUC decision is possible by the end of 1993.
 Construction expenditures, excluding allowance for funds used during construction, are estimated at $580 million in 1993, $560 million in 1994, and $790 million in 1995. Over the next 10 years, the company expects to provide approximately 18 percent of estimated energy needs through conservation and load management programs. In addition to Comanche Peak 2, the company plans to add 1,580 megawatts of gas-fueled combustion turbines between 1998 and 2002.
 -0- 6/18/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (TXU)


CO: Texas Utilities Electric Co. ST: Texas IN: UTI SU: RTG

PS -- NY014 -- 3481 06/18/93 10:11 EDT
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Publication:PR Newswire
Date:Jun 18, 1993
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