DUFF & PHELPS: DUKE POWER COMPANY $150 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'AA-'
CHICAGO, June 15 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "AA-" (Double-A-Minus) to Duke Power Company's proposed offering for $150 million of first and refunding mortgage bonds. Proceeds will be used for refunding. Duke Power has strong fundamentals that include a low-cost supply of nuclear and coal-fired power, reasonable regulation, and steady financial ratios. Management has maintained close control on costs. Further productivity improvements and sales growth should reflect positively on future earnings. Duke Power continues to emphasize demand-side management programs to help to defer the need for additional capacity. The company's large fixed costs under its take-or-pay contract for power from the Catawba nuclear plant are scheduled to decline and the related accumulated deferred costs are expected to be recovered over the next several years. Capital expenditures will increase temporarily for the accelerated replacement of steam generators at three nuclear units due to stress corrosion cracking. The McGuire Unit 1 generator is scheduled for replacement by 1995, Catawba Unit 1 in 1996, and McGuire Unit 2 in 1997. Duke Power Company serves approximately 1.7 million customers in a growing service territory covering 20,000 square miles in North Carolina and South Carolina. -0- 6/15/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (DUK)
CO: Duke Power Company ST: North Carolina IN: UTI SU: RTG
TS -- NY052 -- 2112 06/15/93 12:13 EDT
|Printer friendly Cite/link Email Feedback|
|Date:||Jun 15, 1993|
|Previous Article:||COMMONWEALTH EDISON COMPANY $900 MILLION DEBT SECURITIES (SHELF) RATED BY DUFF & PHELPS|
|Next Article:||CAMELOT SEEKS TO REPLACE MANAGEMENT OF TYREX|