DUFF & PHELPS: LONG ISLAND LIGHTING COMPANY $142 MILLION DEBENTURES RATED 'BBB-'
CHICAGO, Feb. 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB-' (Triple-B-Minus) to Long Island Lighting Company's (LILCO) offering of $142 million 7.5 percent debentures due 2007. Proceeds will be used primarily to redeem outstanding general and refunding bonds. LILCO's financial protection measures are expected to improve gradually under the current three-year electric rate plan. The plan provided for annual increases of 4.15, 4.1, and 4.0 percent, and commenced in Dec. 1991. The plan includes a revenue decoupling mechanism, which should lessen earnings volatility, and also provides earnings incentives above the authorized return if certain targets are met. Continued regulatory support will be necessary to achieve the targeted rate improvement to credit protection measures contemplated by the 1989 Shoreham settlement agreement. An active refunding program has sharply reduced the amount of high- cost debt and preferred stock; however, leverage is expected to remain high over the intermediate term. Internal cash should cover approximately two-thirds of capital expenditures in the 1992-94 period, including Shoreham "post settlement" costs. An aggressive demand side management program is expected to minimize load growth. LILCO provides electric and gas service in a 1,230 square mile area encompassing Nassau and Suffolk Counties and the Rockaway Peninsula in Queens County, all on Long Island, N.Y. Earlier this year, LILCO completed the transfer of the Shoreham plant to the Long Island Power Authority and has received Nuclear Regulatory Commission approval for the plant's decommissioning, expected to begin by year end. -0- 2/19/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps, 312-368-3112/ (LIL)
CO: Long Island Lighting Company ST: New York IN: UTI SU: RTG
WB -- NY025 -- 8340 02/19/93 11:02 EST
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|Date:||Feb 19, 1993|
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