Printer Friendly

CONSUMERS POWER, MIDLAND COGENERATION ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE --

 CONSUMERS POWER, MIDLAND COGENERATION ON FITCHALERT NEGATIVE
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Aug. 10 /PRNewswire/ -- Consumers Power Co.'s $1.4 billion "BBB+" senior debt, $300 million "BBB+" shelf registration, $26 million "BBB" debentures, and $163 million "BBB" preferred stock are placed on FitchAlert with negative implications, it was announced today.
 The $613 million "BBB-" senior secured lease obligation bonds of Midland Funding Corp. I, and its shelf registration, are also placed on FitchAlert negative, as are the $367 million "BB" subordinated secured lease obligation bonds series A and B of Midland Funding Corp. II. Midland Funding Corps. I and II are special purpose financing vehicles for the sale-leaseback of the 1,370 megawatt Midland plant by the Midland Cogeneration Venture Limited Partnership (MCV).
 The action is based on the lack of progress to date in resolving complex regulatory issues. The recent withdrawal of support of the company's proposed settlement by the staff of the Michigan Public Service Commission introduces a major impediment that may cause a protracted delay and/or dissolution of an attempt to resolve MCV and other issues. Although the MCV ratings are independent of Consumers, its largest customer, any interruption or impairment in payments under the power purchase agreement could weaken MCV's economics.
 On July 7, the company filed a proposed settlement with the commission requesting approval of issues limited to MCV cost recovery, the Public Utility Regulatory Policies Act, and a court remand concerning capacity charges in the power purchase agreement between Consumers and the MCV partnership. The staff as a condition of its support requested a letter of non-objection from MCV, which was not a party to the proposed settlement. MCV initially complied by submitting a letter not to object or appeal any commission order approving the settlement.
 On July 21, MCV withdrew its letter and substituted one with conditions after its legal counsel advised that a letter of non- objection could be interpreted as being in violation of its obligation under its sale-leaseback permanent financing agreement.
 On July 30, the commission staff withdrew its support of the proposed settlement. On July 31, MCV withdrew the July 21 letter and submitted a revised and unconditional letter of non-objection addressing staff's concern. MCV agreed not to appeal any order approving the proposal and agreed to dismiss all of its appeals and intervention. MCV also implicitly agreed that it would accept the commission's decision on the exercise of a clause which could allow Consumers to withhold payment on part of the power purchase agreement.
 -0- 8/10/92
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/ CO: Consumers Power Co.; Midland Funding Corp. I ST: IN: UTI SU: RTG


TS -- NY034 -- 8467 08/10/92 11:07 EDT
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:Aug 10, 1992
Words:450
Previous Article:MICRODYNE AND NOVELL SIGN TECHNOLOGY LICENSE AGREEMENT FOR NETWORK INTERFACE CARDS
Next Article:ACTION PRODUCTS INTERNATIONAL PRODUCES ANOTHER RECORD BREAKING SALES MONTH AND PLANS DIVISION SPINOFFS
Topics:


Related Articles
BANKRUPT EL PASO ELECTRIC BONDS CUT TO 'DDD' BY FITCH -- FITCH FINANCIAL WIRE --
WEST PENN POWER $493 MILLION 'AA-' DEBT ON FITCHALERT NEGATIVE --FITCH FINANCIAL WIRE--
MICHIGAN REGULATORY AGREEMENT HELPS CONSUMERS POWER, FITCH SAYS -- FITCH FINANCIAL WIRE --
COMMONWEALTH EDISON 'A-' SENIOR DEBT ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE --
COLUMBUS SOUTHERN POWER PREFERRED ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE --
FITCH PLACES ILLINOIS POWER PREFERRED ON ALERT; NEGATIVE IMPLICATIONS -- FITCH FINANCIAL WIRE --
FITCH AFFIRMS COLUMBUS SOUTHERN POWER DEBT, PREFERRED ON ALERT NEGATIVE -- FITCH FINANCIAL WIRE --
COMMONWEALTH EDISON SENIOR DEBT LOWERED TO 'BBB+', ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE
SOUTHERN CALIFORNIA EDISON CO. 'AA' SENIOR DEBT, PREFERRED ON FITCHALERT NEGATIVE -- FITCH FINANCIAL WIRE --
Duke Power FitchAlert Negative; PanEnergy FitchAlert Positive

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters