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DUFF & PHELPS RATES SOUTHERN CALIFORNIA EDISON

 CHICAGO, Aug. 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of "A+" (Single-A-Plus) to Southern California Edison Company's shelf registration for $400 million of first and refunding mortgage bonds. A rating of "A+" (Single-A-Plus) has also been assigned to the company's $125 million offering of 5-7/8 percent first and refunding mortgage bonds due Sept. 1, 2004, to be sold off this shelf.
 Southern California Edison is a well managed utility with good cash flow and rate mechanisms that help stabilize earnings and reduce regulatory lag. Construction expenditures should remain relatively level and are expected to be funded largely from internal cash. A reduction in short-term debt will improve overall debt leverage as the company recovers its Palo Verde deferrals.
 In Southern California Edison's last rate case the California Public Utilities Commission chose not to recognize the company's large portfolio of purchased power obligations and the necessary higher equity ratio and/or return on equity to support credit fundamentals. More recently, the commission's consumer advocacy branch recommended a 10.7 percent return on equity (the company is currently allowed 11.8 percent) for the major California electric utilities. The commission is expected to issue a final decision on this case by the end of this year. This current case and the evolving California regulatory climate will be important to Southern California Edison's future financial strength. Other risks include the company's relatively high customer rates in an increasingly competitive environment and the unstable financial strength of some of the other Palo Verde nuclear plant owners. Purchased power obligations are also quite large.
 Southern California Edison, the principal subsidiary of SCEcorp, provides electric service to over four million customers in a 50,000 square mile area of central and southern California.
 -0- 8/25/93
 /CONTACT: William A. Abrams of Duff & Phelps Credit Rating Co., 312-368-3112/
 (SCE)


CO: Southern California Edison Company ST: California IN: UTI SU: RTG

SM-MG -- NY050 -- 0400 08/25/93 13:55 EDT
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Publication:PR Newswire
Date:Aug 25, 1993
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