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DUKE POWER SENIOR DEBT SHELF RATED 'AA', PREFERRED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 DUKE POWER SENIOR DEBT SHELF RATED 'AA', PREFERRED 'AA-' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Oct. 28 /PRNewswire/ -- Duke Power Co.'s new $450 million shelf registration of first and refunding mortgage bonds is rated "AA" by Fitch. A $39 million issue of sinking fund preferred stock taken down from an existing shelf is rated "AA-". The new preferred issue includes $13 million 6.2 percent shares due Dec. 16, 2000, $13 million 6.3 percent shares due Dec. 16, 2001, and $13 million 6.4 percent shares due Dec. 16, 2002.
 Affirmed are the company's outstanding "AA" $2.9 billion first and refunding mortgage bonds, medium-term notes series, and York County, S.C. pollution control facility revenue refunding bonds, series 1990, as well as $782 million "AA-" preferred stock. Duke's "F-1+" commercial paper is also affirmed.
 Combined with a prior shelf registration, Duke has the ability to sell up to $500 million first and refunding mortgage bonds. Duke plans to use the proceeds to finance its construction program, acquire nuclear fuel, and redeem outstanding debt when it will result in overall cost savings. The credit trend is stable.
 This well-managed utility has solid generating diversity (64 percent nuclear, 34 percent coal, and 2 percent hydro and other). Its overall financial condition has been stable. Second quarter financials were impacted by higher operating and maintenance expenses, a $30 million after-tax reserve taken related to the second remand of a 1986 North Carolina rate order, and essentially flat electric sales. For the twelve months ended June 30, pre-tax interest coverage was 3.63 times (x), down slightly from 4.00x at the end of last year.
 Internal cash flow has been very strong. For this same period, it was 118 percent vs. 96 percent.
 Over the three years 1992-1994, construction expenditures, including allowance for funds used during construction but excluding nuclear fuel requirements, are estimated at $2.25 billion. Internal cash generation should support about 80 percent of this total. Year-to-date financings include a total of $940 million first and refunding mortgage bonds and $245 million preferred stock. Retirements or calls totaled $884 million of debt plus $194 million of redeemed or sinking fund preferred. The June 30 embedded interest cost was 8.52 percent vs. 8.72 percent at year-end and preferred dividend cost was 7.31 percent vs. 7.48 percent over the parallel periods.
 -0- 10/28/92
 /CONTACT: Anne Faber of Fitch 212-908-0566/
 (DUK) CO: Duke Power Co. ST: North Carolina IN: UTI SU: RTG


TS -- NY050 -- 5928 10/28/92 11:12 EST
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Date:Oct 28, 1992
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