D&P: DEPARTMENT OF WATER AND POWER OF THE CITY OF LOS ANGELES $579.465 MILLION ELECTRIC PLANT REFUNDING REVENUE BONDS, ISSUE OF 1993 RATED 'AA'
CHICAGO, March 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to the Department of Water and Power of the city of Los Angeles' proposed offering of $579.465 million of electric plant refunding revenue bonds, issue of 1993. Proceeds will be used to redeem outstanding electric plant revenue bonds. The bonds are payable solely from a separate power revenue fund and not out of any other fund or monies of the department. The department is under the direction of a five-member board which is obligated by charter to set rates (subject to the approval of the City Council) at levels sufficient to meet all expenses, including debt service requirements. Generating capacity is diversified through wholly-owned oil/gas units in the service area, ownership shares in projects in Arizona and Nevada, and power purchases. A well-developed transmission network facilitates power imports from the desert areas and the Pacific Northwest. The department's purchased power entitlement represents the largest participation in the Intermountain Power Project, a large Utah coal plant. The Power System's Intermountain and other purchased power commitments represent large off balance sheet liabilities and impact debt service coverages recognized by the department in its financial planning. Construction expenditures are accelerating as expected. Over one- half of the five-year capital program, totaling approximately $2.4 billion, will be externally financed. The Power System will repower some of its older steam units in order to comply with strict environmental and clean air standards in California. As most new capacity and energy will come from sources outside California, the Power System is also studying several projects involving expansion of its transmission system and new capacity additions in other states. Los Angeles Department of Water and Power, the nation's largest municipal utility, provides electric and water service to a population of nearly 3.5 million people within a 465 mile area, including the city of Los Angeles. -0- 03/23/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ ()
CO: Los Angeles Department of Water and Power ST: California IN: UTI SU: RTG
AH -- NY075 -- 8832 03/23/93 16:45 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Mar 23, 1993|
|Previous Article:||IPC RELEASES BOOK-TO-BILL RATIOS FOR FEBRUARY 1993|
|Next Article:||DUFF & PHELPS RATES NORTHERN ILLINOIS GAS COMPANY'S $50 MILLION FIRST MORTGAGE BONDS 'AA+'|