DUFF & PHELPS: NIAGARA MOHAWK POWER CORPORATION $110 MILLION FIRST MORTGAGE BONDS RATED 'BBB'
CHICAGO, June 28 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB' (Triple-B) to Niagara Mohawk Power Corporation's (NYSE: NMK) $110 million issuance of 6 5/8 percent first mortgage bonds due July 1, 2005. Niagara Mohawk's financial measures have improved as a result of rate relief, cost control efforts, ongoing refunding of high cost debt, and planned common equity offerings. However, the improvement will be offset by a sharp rise in required purchases of non-utility generated (NUG) capacity over the next few years. Niagara Mohawk has been taking aggressive actions to reduce purchased capacity expenses to moderate increases in customer rates. Petitions have been filed with the New York Public Service Commission (PSC) requesting approval to curtail NUG output during periods of excessive power and requesting that the company be allowed to require additional security from NUGs. Contracts have also been terminated, when feasible. Internal cash is expected to fund the bulk of construction outlays. Improvement in the operating performance of the Nine Mile Point nuclear plant, of which the company owns 100 percent of unit 1 and 41 percent of unit 2, is expected. Niagara Mohawk is a combination electric and gas company having the largest service area in New York state. The electric territory covers about 24,000 square miles extending from Lake Erie to the borders of Canada, New England and Pennsylvania. -0- 6/28/93 /CONTACT: James J. Stork, CFA, of Duff & Phelps Credit Rating Co., 312-368-3125/ (NMK)
CO: Niagara Mohawk Power Corporation ST: New York IN: UTI SU: RTG
MP -- NY077 -- 6421 06/28/93 16:39 EDT
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|Date:||Jun 28, 1993|
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