DUFF & PHELPS: BALTIMORE GAS AND ELECTRIC COMPANY $40 MILLION 7.125 PERCENT CUMULATIVE PREFERENCE STOCK, 1993 SERIES RATED 'A'
CHICAGO, June 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "A" (Single-A) to Baltimore Gas and Electric Company's proposed offering of $40 million of 7.125 percent cumulative preference stock, 1993 series ($100 par value). Proceeds will be used to meet capital requirements and for other corporate purposes. Baltimore Gas and Electric has maintained strong long-term credit fundamentals. Management has demonstrated its commitment to upholding the company's financial integrity, issuing common equity as needed. The company benefits from an economically diversified service territory, reasonable regulation, and a well balanced fuel mix. The 1650 mw Calvert Cliffs Nuclear Plant is now running well, allowing the company to reduce its power purchases and improve cash flow. A decision from the Maryland Public Service Commission (PSC) to allow recovery through rates of the replacement power costs associated with the 1989-91 Calvert Cliffs outages is pending. Hearings are scheduled to begin this summer with a decision expected in 1994. In May 1993, the PSC authorized rate increases of $84.9 million and $1.6 million for electric and gas, respectively. Although the PSC lowered the allowed return on equity to 11.75 percent, the common equity component was increased to 44.55 percent from 40.75 percent. The company's request to increase depreciation rates, involving about $22 million, was deferred to a separate proceeding. Baltimore Gas and Electric provides electric and gas service to the city of Baltimore and the surrounding area in central Maryland. Diversified fuel sources include coal, nuclear, oil, gas, and hydro. -0- 6/22/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (BGE)
CO: Baltimore Gas and Electric Company ST: Maryland IN: UTI SU: RTG
TS -- NY068 -- 4665 06/22/93 15:46 EDT
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|Date:||Jun 22, 1993|
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