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CONNECTICUT LIGHT AND POWER COMPANY $80 MILLION PREFERRED STOCK RATED 'BBB-' BY DUFF & PHELPS

 CHICAGO, Oct. 6 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (Triple-B-Plus) to Connecticut Light and Power Company's proposed $80 million offering of preferred stock. Proceeds will be use to refinance higher cost preferred stock.
 Cost controls, rate relief, and strong internal cash generation from amortization of Connecticut Light and Power's recoverable investment in the Millstone 3 and Seabrook plants should gradually improve credit fundamentals.
 In June, the Connecticut Department of Public Utility Control (DPUC) authorized a three-year rate increase of $141.3 million; $46 million (2 percent) in 1993, $47.1 million (2 percent) in 1994, and $48.2 million (2.1 percent) in 1995. The authorized return on equity (ROE) will increase annually from 11.5 percent to 11.7 percent. The plan provides for the additional components of the Seabrook 1 and Millstone 3 phase-in plans to be included in rates. The plan also provides for recovery over three years of the company's $155 million investment in replacement steam generators at the Millstone 2 nuclear unit. The DPUC order denied recovery of about $42 million of replacement power costs attributable to a nuclear capacity factor below 55 percent during 1991-1992.
 Conservation and load management programs, power purchases, and lower expected sales growth should delay the need for major new generating capacity until after the year 2000. A prolonged slowdown in the regional economy and defense spending curtailments will slow financial improvement.
 Connecticut Light & Power is a wholly owned subsidiary of Northeast Utilities. The company is the largest electric utility in Connecticut and provides electric service to most of the state.
 -0- 10/6/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/


CO: Connecticut Light and Power Company ST: Connecticut IN: UTI SU: RTG

PS -- NY044 -- 9325 10/06/93 12:11 EDT
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Publication:PR Newswire
Date:Oct 6, 1993
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