DUFF & PHELPS RATES CAROLINA POWER & LIGHT COMPANY 100 MILLION FIRST MORTGAGE BONDS 'A+'
CHICAGO, Aug. 19 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `A+' (Single-A-Plus) to Carolina Power & Light Company's $100 million offering of 6-7/8 percent first mortgage bonds, due 2023. Proceeds will be used refinance higher cost debt. Carolina Power & Light has a stable service territory and reasonable regulation. Strong internal cash generation, reducing debt levels, and modest sales growth should add stability to credit protection measures. Carolina Power & Light has substantial interests in the Brunswick, Harris, and Robinson nuclear facilities. Brunswick Unit 2 was returned to service in May, while Brunswick Unit 1 is scheduled to return to service this fall; both units had been down since April 1992. The Brunswick plant was placed on the Nuclear Regulatory Commission's Watch List in July 1992. Issues at the plant are being addressed. The company has increased its construction budget by $110 million for 1993 and 1994, reflecting the three-year Brunswick Improvement Plan. In July 1993, the company reached an agreement with the North Carolina Public Utilities Commission Staff and others, which if adopted, would resolve all issues associated with the Brunswick plant outage. Under the agreement, Carolina Power & Light would write-off $25.5 million of the $31.2 million in higher fuel costs incurred during the twelve month period ending March 31, 1993. The $5.7 million balance will be recovered subject to certain operating performance standards for the Brunswick units. Approval of the agreement is expected this fall. Carolina Power & Light's coal-fired generating system, which provides the majority of the company's energy supply, continues to perform well. The system attained an availability factor of 86 percent for 1992 and 87 percent for the past five years. Carolina Power & Light Company serves approximately one million electric customers in an area encompassing nearly one-half on North Carolina and one-fourth of South Carolina. -0- 8/19/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/ (CPL)
CO: Carolina Power & Light Company ST: North Carolina, South Carolina IN: UTI SU: RTG
PS -- NY039 -- 4323 08/19/93 12:27 EDT
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|Date:||Aug 19, 1993|
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