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FITCH SAYS SITHE/INDEPENDENCE PURCHASE AMENDMENT NOT MATERIAL -- FITCH FINANCIAL WIRE --

 NEW YORK, April 16 /PRNewswire/ -- Debt ratings on Sithe/Independence Funding Corp.'s $717 million 'BBB' secured notes and bonds will not be affected by a recent amendment to an agreement for the purchase of energy between Sithe and Con Edison.
 On April 5, 1993, Sithe and Con Edison amended the Energy Purchase Agreement (EPA) to increase the amount of energy which can be curtailed (suspended) by Con Edison. Suspension of energy to Con Edison would reduce future payments to the project partnership. However, the potential loss of revenues allowed under the amended agreement is not significant and will not materially affect the strong project economics.
 The amended agreement permits Con Edison to curtail an additional 50 hours of energy in 1994 and 1995 and 200 hours annually beginning in 1996 through 2013. The amended agreement also requires Con Edison to use its best efforts to schedule any curtailment in a manner that would allow Sithe to schedule maintenance during the suspension. The original contract permitted 200 hours of curtailment annually beginning in 1994, and Con Edison had earlier petitioned the New York Public Service Commission (PSC) to allow an additional 600 hours of curtailment. The amended agreement eliminates the uncertainty surrounding the curtailment issue and relinquishes Con Edison's right to any further curtailment regardless of the outcome of the pending PSC curtailment proceeding.
 According to R.W. Beck, the independent engineer, the amended pact should not have a significant impact on the economics of the contract. R.W. Beck is of the opinion that if economic dispatch is the basis of curtailment, the annual energy sales to Con Edison and Niagara Mohawk should not be materially affected. Based on the newly agreed to curtailment limits, Beck estimates a reduction in the minimum debt service coverage to 1.80 times (x) from 1.84x and a reduction in the average annual debt service coverage to 2.80x from 2.91x.
 The amended agreement followed an administrative error that resulted in Sithe missing a single milestone payment to Con Edison of $2,000,000 due March 31, 1993, after which Con Edison delivered to Sithe a letter of contract cancellation. Following the negotiated agreement Con Edison withdrew the letter of cancellation and accepted the milestone payment. Sithe is in the process of adding additional personnel to administer all future contract compliance issues to avoid a reoccurrence of this problem.
 -0- 4/16/93
 /CONTACT: Rob Hornick, 212-908-0564, or Ralph Pellecchia, 212-908-0586, or Alan Spen, 212-908-0594, all of Fitch/


CO: Sithe/Independence Funding Corp. ST: IN: FIN SU: RTG

TM -- NY077 -- 0969 04/16/93 17:08 EDT
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Date:Apr 16, 1993
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