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DUFF & PHELPS: PENNSYLVANIA ELECTRIC COMPANY $450 MILLION (SHELF) RATED

 CHICAGO, June 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to Pennsylvania Electric Company's $450 million combination shelf registration as follows: first mortgage bonds and Series D secured medium-term notes `A' (Single-A), and cumulative preferred stock `A-' (Single-A-Minus). Proceeds will be used to redeem outstanding senior debt and for construction.
 Pennsylvania Electric has good quality earnings and a stable service territory. Reserve margins for the GPU system, of which Pennsylvania Electric is a member, are adequate. Pennsylvania Electric's financial protection measures will be pressured as new debt is issued to help fund a growing construction program associated with air quality improvements. A temporary decline in revenues and Kwh sales is expected with the loss of a major industrial customer in late 1992.
 The Pennsylvania Public Utility Commission (PUC) modified its very negative January 1993 order which disallowed recovery of certain Three Mile Island 2 (TMI-2) decommissioning costs for affiliate Metropolitan Edison Company. Pennsylvania Electric, although not presently involved in a rate case, initially recorded a $54.7 million pre-tax charge to 1992 earnings due to the precedent set by the Metropolitan Edison order and its 25 percent ownership interest in TMI-2. With the PUC modification, which in effect provides recovery of decommissioning costs, the $54.7 million charge was substantially eliminated.
 Separately, the PUC's "show cause" order investigating the company's level of earnings was dismissed in March 1993.
 Pennsylvania Electric is a subsidiary of General Public Utilities Corporation. The company provides electric service to a territory located in western, northern and south central Pennsylvania, with a population of about 1.5 million.
 -0- 6/22/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
 (GPU)


CO: Pennsylvania Electric Company ST: Pennsylvania IN: UTI SU: RTG

LG -- NY032 -- 4494 06/22/93 10:44 EDT
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Publication:PR Newswire
Date:Jun 22, 1993
Words:299
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