DUFF & PHELPS: PACIFIC GAS AND ELECTRIC COMPANY $300 MILLION FIRST AND REFUNDING MORTGAGE BONDS, SERIES 1993A, RATED 'A'
CHICAGO, March 10 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "A" (Single-A) to Pacific Gas and Electric Company's proposed offering of $300 million of first and refunding mortgage bonds. The bonds join the outstanding first and refunding mortgage bonds on Rating Watch -- Unfavorable. Pacific Gas and Electric has a relatively strong and diverse service territory, resourceful management, and rate mechanisms that help stabilize the company's earnings and financial measures. The company is expected to add equity as necessary to support financial ratios. Excellent plant operations were achieved at the company's Diablo Canyon nuclear plant in 1992 (Diablo capacity factor 88 percent). Coverage levels depend on the continuation of high performance levels at Diablo. In December 1992, the California Public Utilities Commission (CPUC) authorized rate increases of $254.4 million (3.4 percent) for electric and $68.3 million (2.7 percent) for gas. In addition, recently announced cost control measures should provide an opportunity to improve earnings. The authorized ROE was lowered to 11.9 percent for 1993 from 12.65 percent in 1992. The CPUC's decision not to increase the equity ratio to reflect the substantial purchased power obligation is viewed negatively. Resolution to gas contract issues is pending. Pacific Gas and Electric is one of the nation's largest investor- owned electric and gas utilities, serving 11.8 million people in northern and central California. -0- 3/10/93 /CONTACT: William A. Abrams of Duff & Phelps, 312-368-3161/ (PCG)
CO: Pacific Gas and Electric Company ST: California IN: UTI SU: RTG
GK -- NY069 -- 8582 03/10/93 16:57 EST
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|Date:||Mar 10, 1993|
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