DUFF & PHELPS: NORTHERN STATES POWER COMPANY -- WISCONSIN $40 MILLION FIRST MORTGAGE BONDS (SHELF) RATED 'AA'
CHICAGO, Sept. 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA' (Double-A) to Northern States Power Company -- Wisconsin's (NSP) offering of $40 million of first mortgage bonds due Oct. 1, 2003. The 5.75 percent bonds were priced at 99.476 to yield 5.82 percent. Proceeds will be used to redeem outstanding bonds and to fund other capital expenditures. NSP has a strong capital structure, low gas and electric rates, and a favorable regulatory environment. The electricity interchange agreement with parent Northern States Power Company -- Minnesota ensures NSP's power supply. Without this agreement, the company could not meet its power demand obligations. Mitigating this risk, is the requirement that all modifications to the interchange agreement be approved by the Federal Energy Regulatory Commission. The company's planned construction expenditures for 1994-1998 total $333 million, with approximately one-third designated for transmission system upgrades. Upgrades are necessary to increase the capacity of the present system. Internal funding is projected to cover approximately 62 percent of total construction expenditures. In line with the company's objective to keep rates low, NSP will not seek a retail electric rate increase for 1994. NSP filed for a $1.3 million (1.9 percent) increase in natural gas rates to cover increasing investments in natural gas facilities and costs associated with managing the more complex deregulated gas business. Northern States Power Co. -- Minneapolis, has purchased the 496-mile Viking natural gas pipeline for $45 million. The line directly links NSP with Canadian natural gas supplies and increases fuel transportation. Northern States Power Company -- Wisconsin provides electric and gas service to approximately 250,000 customers in northwestern Wisconsin and the Upper Peninsula of Michigan. -0- 9/22/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (NSP)
CO: Northern States Power Company ST: New York, Wisconsin, Minnesota, Michigan IN: OIL SU: RTG
WB -- NY074 -- 4817 09/22/93 15:32 EDT
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|Date:||Sep 22, 1993|
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