DUFF & PHELPS: POTOMAC ELECTRIC POWER COMPANY $350 MILLION FIRST MORTGAGE BONDS (SHELF) RATED 'AA-'
CHICAGO, Sept. 29 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `AA-' (Double-A-Minus) to Potomac Electric Power Company's (NYSE: POM) shelf registration for $350 million of first mortgage bonds. The rating also applies to the company's three-part offering for $175 million of first mortgage bonds sold off of this shelf. Proceeds will be used to refund short and long-term debt. Potomac Electric Power's strong utility fundamentals include below average rates and a resilient service territory economy. Maryland regulation has been supportive and the Washington D.C. regulatory environment has been improving. Continued regulatory support will be necessary due to cost increases in purchased power and demand-side management programs. As electric demand growth begins to moderate, construction expenditures should level off and trend downward. The company is not expected to build any additional generating capacity for the rest of this decade. Purchased power expenses will increase as capacity payments associated with a 450 mw contract rise in 1994. Additionally, planned non-utility generator projects may be on-line by the mid-1990s. Potomac Electric Power Company provides electric service to 1.9 million people in a 640 square mile territory which includes all of the District of Columbia and parts of Maryland. About 41 percent of revenues are under the D.C. jurisdiction, 53 percent are regulated by the Maryland Public Service Commission, and 6 percent by the Federal Energy Regulatory Commission. Non-utility diversification is carried out through subsidiary Potomac Capital Investment Corporation. -0- 9/29/93 /CONTACT: Williams A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3161/ (POM)
CO: Potomac Electric Power Company ST: District of Columbia IN: UTI SU: RTG
TM -- NY084 -- 7023 09/29/93 18:01 EDT
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|Date:||Sep 29, 1993|
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