DUFF & PHELPS: CONNECTICUT LIGHT AND POWER COMPANY $300 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'A-'
CHICAGO, July 14 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A-' (Single-A-Minus) to Connecticut Light and Power Company's offering of $300 million of first and refunding mortgage bonds. The two-part offering consists of $200 million 5.75 percent bonds due 2000 and $100 million 7.54 percent bonds due 2023. Proceeds will be use to refund higher cost outstanding first mortgage bonds. Strong internal cash generation due to the amortization of Connecticut Light and Power's (CL&P) recoverable investment in the Millstone 3 and Seabrook plants and cost control measures are expected to result in gradually improving 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 returns on equity (ROE) were 11.5 percent 11.6 percent and 11.7 percent for years ending April 1994, 1995, and 1996. 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. CL&P is a wholly owned subsidiary of Northeast Utilities (NYSE: NU). The company is the largest electric utility in Connecticut and provides electric service to most of the state. -0- 7/14/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (NU)
CO: Connecticut Light and Power Company ST: Connecticut IN: UTI SU: RTG
TM -- NY083 -- 1594 07/14/93 16:35 EDT
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|Date:||Jul 14, 1993|
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