DUFF & PHELPS: ROCHESTER GAS AND ELECTRIC CORPORATION $250 MILLION (SHELF) FIRST MORTGAGE BONDS RATED 'BBB+', PREFERRED STOCK RATED 'BBB'
CHICAGO, Aug. 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to the fixed income portions of Rochester Gas and Electric Corporation's $250 million combination shelf registration for debt and equities, including common stock. The first mortgage bond portion is rated `BBB+' (Triple-B-Plus) and the preferred stock portion `BBB' (Triple-B). Proceeds will be used for construction, refundings, and other corporate purposes. Rochester Gas and Electric's credit measures are expected to improve with the receipt of rate relief, continued cost control, limited construction, and moderately-sized equity issuances. The New York Public Service Commission recently approved the company's three-year rate settlement agreement. Although a written order has not been received, modifications to the company's January settlement proposal are expected to be minimal. The January settlement agreement provided for annual electric and gas increases of $21.1 million (2.05 percent), $24.4 million (2.46 percent) and $27 million (2.59 percent) in 1993, 1994 and 1995, respectively. Under the agreement, Rochester Gas and Electric would be able to earn up to a 14.5 percent equity return inclusive of incentive bonuses. The stipulated return on equity was 11.5 percent. The settlement also provided for an electric revenue adjustment mechanism to stabilize earnings. Ongoing capital expenditures are expected to be funded primarily from internal cash generation. Power supply should be adequate through the late 1990s. The company's latest integrated resource plan emphasizes increased demand side management efforts and more efficient use of existing resources. Rochester Gas and Electric operates in a 2,700 square mile area of west-central New York, including Rochester. The company has a 14 percent interest in the Nine Mile Point 2 nuclear unit. In addition, Rochester Gas and Electric owns and operates the Ginna nuclear plant which provides about one-half of its energy requirements. -0- 8/2/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (RGS)
CO: Rochester Gas and Electric Corporation ST: New York IN: UTI SU: RTG
MP -- NY089 -- 8436 08/02/93 14:23 EDT
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|Date:||Aug 2, 1993|
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