DUFF & PHELPS: DUQUESNE LIGHT COMPANY $300 MILLION FIRST COLLATERAL TRUST BONDS RATED 'A-'
CHICAGO, June 14 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A-' (Single-A-Minus) to Duquesne Light Company's shelf registration for $300 million of first collateral trust bonds. Proceeds will be used to redeem outstanding securities and for general corporate purposes. Duquesne Light's financial measures have improved reflecting phase- in rate increases and declining capital costs. Continued cost controls and refinancing of high-cost debt are expected to permit further strengthening in near-term credit protection measures. Strong cash flows should help to reduce debt leverage which is higher than reported when adjusted for sale/leaseback obligations. With adequate reserve margins, no new baseload capacity is presently scheduled in the foreseeable future; forecasted capital expenditure requirements are manageable. Compliance costs for Phase I of the Clean Air Act are moderate and will be accomplished through burning low-sulfur coal and adding low NOx burners at two plants. The proposed 500 mw power sale agreement with General Public Utilities, involving the idle Phillips plant, has been renegotiated with lower pricing. Political controversies continue to stall approval and construction of the GPU-DQE Transmission Project. Commencement of the power sale is now expected no sooner than 1997. Duquesne Light Company, the principal subsidiary of DQE, Inc. (NYSE: DQE), provides electric service to over 576,000 customers in an 800 mile area in southwestern Pennsylvania. The city of Pittsburgh accounts for approximately 30 percent of the total service territory population. In 1992, Duquesne Light sold its interest in the abandoned Perry 2 nuclear unit. -0- 6/14/93 /CONTACT: John C. Dell, of Duff & Phelps Credit Rating Co., 312-368-3161/ (DQE)
CO: Duquesne Light Company ST: Pennsylvania IN: UTI SU: RTG
MP -- NY037 -- 1532 06/14/93 10:30 EST
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|Date:||Jun 14, 1993|
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