DUFF & PHELPS: INDIANAPOLIS POWER & LIGHT COMPANY $235 MILLION FIRST MORTGAGE BONDS (SHELF) RATED 'AA'
CHICAGO, Jan. 3 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to Indianapolis Power & Light Company's shelf registration for $235 million of first mortgage bonds. Proceeds will be used to refund outstanding first mortgage bonds and to finance future construction costs. Indianapolis Power & Light's construction expenditures during the next five years are expected to total over $1 billion, primarily for compliance with clean air legislation and construction of generating plant. It is expected that the company will balance debt sales with the sale of common equity to maintain its relatively conservative capital structure. This pattern is typical of Indianapolis Power & Light's history, as it has built to meet load growth. Regulation in Indiana has been properly supportive through past building cycles. Regulatory recognition of the increased expenditures will be necessary again. Indianapolis Power & Light is starting from a base of low electricity rates -- approximately 30 percent below industry averages. Price increases to meet environmental conformity will narrow the company's competitive edge somewhat. Parent IPALCO Enterprise Inc. had terminated its offer to acquire PSI Resources, Inc. and agreed to drop its opposition to the merger of PSI and Cincinnati Gas & Electric Company. Under the agreement, all three utilities involved dropped the suits and countersuits filed during IPALCO's takeover attempt. The companies also granted each other certain transmission access rights, allowing possible links with other utilities. Indianapolis Power & Light provides electric service to over 385,000 customers in Indianapolis and surrounding area. -0- 1/3/94 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (IPL)
CO: Indianapolis Power & Light Company ST: Indiana IN: UTI SU: RTG
CK -- NY058 -- 8633 01/03/94 16:50 EST
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|Date:||Jan 3, 1994|
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