DUFF & PHELPS: TEXAS UTILITIES ELECTRIC COMPANY $700 MILLION FIRST MORTGAGE & COLLATERAL TRUST BONDS (SHELF) RATED "BBB'
CHICAGO, Sept. 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "BBB" (Triple-B) to Texas Utilities Electric Company's shelf registration for $700 million of first mortgage and collateral trust bonds. A rating of "BBB-" (Triple-B-Minus) has been assigned to the company's shelf registration for 1.5 million shares of cumulative preferred stock, without par. Proceeds will be used to acquire or redeem securities, for construction expenditures, and for other corporate purposes. Common equity issuances and cost control measures have helped Texas Utilities Electric maintain satisfactory levels of credit protection during a period of strong capital growth. Texas Utilities Electric has made a substantial capital investment in the Comanche Peak nuclear project. A 1991 rate order to recover costs associated with Comanche Peak Unit 1 was stringent. In January 1993, the company filed for a $760 million (15.3 percent) annual increase in rates, primarily to recover its Comanche Peak Unit 2 investment. Approximately $3.2 billion of the Unit 2 investment is not in rate base. The unit began commercial operation in early August. As allowed by state regulations, the proposed rate increase was put into effect subject to refund. Adequate rate relief for the second Comanche Peak unit will be important to sustained improvement in financial measures. A final order is expected in late 1993 or early 1994. Texas Utilities Electric Company, a subsidiary of Texas Utilities Company, provides electric service to 2.1 million customers. The 65,000 square mile service area includes parts of north central, eastern, and western Texas. A principal load center is the Dallas/Fort Worth metropolitan area. -0- 9/2/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: Texas Utilities Rating Co. ST: Texas IN: UTI SU: RTG
TS -- NY063 -- 8463 09/02/93 13:42 EDT
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|Date:||Sep 2, 1993|
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