DUFF & PHELPS RATES COUNTY OF JEFFERSON, KY.
CHICAGO, Aug. 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings to County of Jefferson, Kentucky's (Louisville Gas and Electric Company Projects) offerings for $137.2 million of pollution control revenue bonds. A rating of Duff 1+/AA- (One-Plus/Double-A- Minus) applies to the $32.2 million 1993 Series A issue and a rating of `AA-' (Double-A-Minus) applies to the $102 million 1993 Series B issue. The Series A bonds initially will bear interest at flexible rates. Proceeds from both Series will be used to refund outstanding bonds. Relatively stable credit protection measures are projected for Louisville Gas and Electric. The coal-fired Trimble County unit, completed in 1990, should enable the company to meet its power requirements for most of this decade. Construction expenditures are expected to remain low and will be financed completely with internal cash. Louisville Gas and Electric's generating facilities are primarily coal-fired, with all units equipped with sulfur dioxide scrubbers. The company is currently in compliance with both Phase I and Phase II requirements of the Clean Air Act. Clean-up liability associated with sites where manufactured gas plant operations were previously located poses some risk. The Kentucky Court of Appeals recently overturned and remanded to the Kentucky Public Service Commission (KPSC) a Franklin Circuit Court ruling regarding Trimble, which would have required refunds of up to $150 million. The appellate court ruling states that the Franklin Circuit Court improperly set utility rates in ordering the refunds. However, the ruling voided the original 1989 settlement agreement between Louisville Gas and Electric and the KPSC. While the issue is far from settled, we believe the exposure to refunds, if any, is greatly reduced. Louisville Gas and Electric, a subsidiary of LG&E Energy Corp., supplies electricity and natural gas in Louisville and adjacent areas in Kentucky. -0- 8/25/93 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/
CO: ST: Kentucky IN: SU: RTG
PS -- NY033 -- 0312 08/25/93 11:51 EDT
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|Date:||Aug 25, 1993|
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