Printer Friendly

CON ED $1.7 BILLION 'AA' FIRST & REFUNDING MORTGAGE BONDS AFFIRMED BY FITCH -- FITCH FINANCIAL WIRE --

CON ED $1.7 BILLION 'AA' FIRST & REFUNDING MORTGAGE BONDS AFFIRMED BY
 FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Feb. 19 /PRNewswire/ -- Consolidated Edison Co.'s $1.7 billion "AA" first and refunding mortgage bonds, $406 million "AA-" electric facilities revenue bonds Series A, 1985 and 1986, and $675 million "AA-" debentures are affirmed by Fitch. Con Ed's $457 million "AA" preferred stock is also affirmed. The credit trend is changed to stable from declining.
 The affirmation and change in credit trend assumes New York Public Service Commission (PSC) approval in substance of a proposed three-year rate settlement agreement reached with the staff of the PSC. A final PSC decision is expected by April 22.
 The positive settlement provides for increases of about $225 million, including charges to the New York Power Authority (NYPA), in the first year and $400 million and $300 million, respectively, in the second and third year. About one half of the proposed increases in the second and third year reflect full recovery of required purchase power costs from independent power producers, growing to about 1700mw, and costs associated with demand side management programs.
 Additionally, and most importantly, an innovative regulatory Electric Revenue Adjustment Mechanism (ERAM) was established which assures the company a certain level of revenue even if actual kilowatt sales fall below projections. Conversely, any overages will be returned to rate payers.
 The settlement also provides for rates of return on common equity of 11.5 percent in the first year and 11.6 percent in the second and third years and is based on a 52 percent common equity ratio. The company will retain 50 percent of any earnings above an 11.75 percent return in the first year and above 11.85 percent in the second and third years.
 The agreement also includes a number of creative revenue incentives on demand side management, fuel costs, and customer service that will be fully retained by the company if achieved.
 On May 3, 1991, the company originally requested electric rate increases totalling $468.5 million. This request was subsequently reduced by $77 million and includes $65.7 million for costs related to delivering power over its facilities to the NYPA. The request was based on a 13 percent return on common equity and a 50 percent common equity ratio.
 This constructive agreement, viewed in total, combined with Con Ed's low acid rain exposure and strong capitalization structure,should provide the company with a reasonable opportunity to earn and exceed authorized equity returns, mitigate the company's growing dependence on purchase power, and generate the necessary financial protection ratios commensurate with the current rating.
 -0- 2/19/92
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (ED) CO: Consolidated Edison Co. ST: New York IN: UTI SU: RTG SH -- NY021 -- 0348 02/19/92 10:34 EST
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Feb 19, 1992
Words:468
Previous Article:EMBASSY SUITES MOVES DIVISION HEADQUARTERS TO MEMPHIS
Next Article:PHARMACEUTICAL INDUSTRY DEVELOPS 263 MEDICINES FOR USE IN WOMEN
Topics:


Related Articles
DUKE POWER $150 MILLION FIRST MORTGAGE BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
DUKE POWER COMPANY $425 MILLION BOND, NOTE SHELVES RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
DUKE POWER $275 MILLION DEBT RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
OREGON'S $51.4 MILLION G.O. BONDS RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
HINESVILLE LEASED HOUSING CORP. (Ga.) REFUNDING BOND 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
PSE&G $600 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --
TEXAS UTILITIES $797 MILLION SHELF DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --
DUKE POWER $200 MILLION SENIOR DEBT SHELF RATED 'AA' BY FITCH -- FITCH FINANCIAL WIRE --
ORANGE & ROCKLAND UTILITIES 'AA-' SENIOR DEBT AFFIRMED, OFF FITCHALERT -- FITCH FINANCIAL WIRE --
Con Ed $100 Million Unsecured Debentures Rated 'AA-' By Fitch IBCA - Fitch IBCA Financial Wire -

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters