DUKE POWER COMPANY: $100 MILLION FIRST AND REFUNDING MORTGAGE BONDS RATED 'AA-'; $50 MILLION PREFERRED STOCK REAFFIRMED AT 'A+'
CHICAGO, Feb. 1 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of AA-' (Double-A-Minus) to Duke Power Company's (NYSE: DUK) proposed offering of $100 million of first and refunding mortgage bonds, and an A+' (Single-A-Plus) rating to the proposed $50 million offering of preferred stock ($100 par value). Both issues are being sold from existing shelf registrations. Duke Power has strong utility fundamentals that include a low-cost supply of nuclear and coal-fired power, reasonable regulation and good management. Productivity improvements and future sales growth are expected to make positive contributions to earnings. The company's large fixed costs under its take-or-pay contract for power from the Catawba nuclear plant are scheduled to decline and accumulated deferred costs to be recovered. Duke Power Company serves approximately 1.7 million customers in a growing service territory covering 20,000 square miles in North Carolina and South Carolina. Duke Power is emphasizing demand-side management programs to help defer the need for additional capacity. Capital expenditures will increase for the accelerated replacement of steam generators at three of Duke Power's nuclear units. -0- 2/1/93 /CONTACT: William A. Abrams, CFA, 312-368-3112, for Duff & Phelps Credit Rating Company/ (DUK)
CO: Duke Power Company ST: North Carolina, South Carolina IN: UTI SU: RTG
TM -- NY104 -- 1556 02/01/93 17:17 EST
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|Date:||Feb 1, 1993|
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