DUFF & PHELPS: CONSUMERS POWER COMPANY $600 MILLION FIRST MORTGAGE BONDS RATED 'BBB'
CHICAGO, Sept. 23 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB' (Triple-B) to Consumers Power Company's offering of $600 million of first mortgage bonds. Proceeds primarily will be used for capital expenditures. Consumers' credit fundamentals should improve near term with anticipated rate relief in 1994, equity infusions from parent CMS Energy Corporation (CMS), and normal weather. The company filed a three-phase rate case in May 1993, seeking a total increase of $165.6 million. A final decision is expected during the first quarter of 1994. The below- average regulatory environment is a concern. Most issues related to cost recovery of power purchases from the Midland Cogeneration Venture (MCV) project were resolved in the March 1993 settlement. While the company incurred a write-off of $343 million, the settlement eliminates major uncertainties. The company retroactively effected a quasi-reorganization as of Dec. 31, 1992, in which Consumers' retained earnings deficit of $574 million was eliminated by transfer from other paid-in capital. Consumers resumed paying dividends on its common stock to CMS in the second quarter of 1993. Consumers Power Company, the principal subsidiary of CMS, is Michigan's largest utility. The company serves approximately 1.5 million electric customers and 1.4 million gas customers in the Lower Peninsula of Michigan. -0- 9/23/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (CMS)
CO: Consumers Power Company ST: Michigan IN: UTI SU: RTG
CK -- NY042 -- 5197 09/23/93 12:14 EDT
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|Date:||Sep 23, 1993|
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