DUFF & PHELPS: NEW YORK STATE ELECTRIC & GAS CORPORATION $100 MILLION FIRST MORTGAGE BONDS RATED 'BBB+'
CHICAGO, June 30 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB+' (Triple-B-Plus) to New York State Electric & Gas Corporation's (NYSE: NGE) offering of $100 million 7.45 percent first mortgage bonds due July 15, 2023. New York State Electric & Gas Corporation's financial performance has been gradually improving as expected, assisted by common equity offerings and rate increases received in 1992. The improvement is somewhat offset by a sharp rise in purchased power obligations. Although generating capacity is adequate, New York State Electric & Gas is obligated to purchase considerable amounts of capacity from non- utility generators (NUGs), as required under the Public Utility Regulatory Policies Act. The cost of this capacity, as well as the cost of required demand side management programs, will increase the company's future revenue requirements. The company's efforts to reduce the rate impact of purchased capacity from NUGs include terminating contracts where feasible and petitioning the New York Public Service Commission (PSC) for approval to curtail NUG purchases. In November 1992, New York State Electric & Gas filed a base rate request with the PSC intended to raise electric rates by $77.5 million (5.5 percent) and gas rates by $9.5 million (3.6 percent). A decision is expected by November 1993. The company is continuing its efforts to negotiate an alternative multi-year rate settlement with the PSC Staff and others. New York State Electric & Gas Corporation provides electric and gas service in the central, eastern and western parts of New York state. -0- 6/30/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (NGE)
CO: New York State Electric & Gas Corporation ST: New York IN: UTI SU: RTG
MP -- NY070 -- 7308 06/30/93 16:09 EDT
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|Date:||Jun 30, 1993|
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