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JACKSONVILLE ELECTRIC AUTHORITY (FLA.) $78.3 MILLION COMMERCIAL PAPER NOTES 'F-1+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, May 25 /PRNewswire/ -- Jacksonville Electric Authority's (JEA), Fla., $78.3 million electric system commercial paper (CP) notes, series B and C are rated `F-1+' by Fitch. The notes are scheduled to sell in June with Lehman Brothers as CP dealer.
 The outstanding $50 million `F-1+' series A electric system CP notes are affirmed, as are `AA+' ratings on JEA's outstanding $2.1 billion St. Johns River Power Park System Bonds, $547.8 million Electric System Bonds, and $169.1 million Bulk Power Supply System Bonds (Scherer 4 Project, Issue One, Series 1991 A). The credit trend is stable.
 The `F-1+' rating is based on JEA's excellent credit quality, strong financial position, and ability to access the public debt markets. JEA will issue $78.3 million of electric system CP notes to refund, along with other available moneys, $100 million outstanding electric system revenue bonds, series one 1982A. Liquidity support for the notes is provided by a credit agreement among JEA, Morgan Guaranty Trust Co. of New York, J.P. Morgan Delaware, and Morgan Guaranty Trust Co. of New York, as agent. Under the credit agreement, the banks have agreed to make loans to JEA in amounts up to their commitment levels, which equals the full amount of the program, enabling JEA to pay the principal amount of maturing notes if other moneys are not available. Each CP instrument will mature no later than 270 days from the issuance date and bear interest no higher than 15 percent annually.
 JEA benefits from a diversified power supply program, sound financial operations, very competitive electric rates, and a well regarded management team. The authority's well balanced resource mix includes its ownership interest in the highly efficient St. Johns River Power Park (SJRPP) coal-fired units as well as an interest in the coal- fired Scherer Unit 4. In addition, JEA's integrated transmission system enhances the electric system's overall resource mix. Financial operations remain strong, with solid internal cash flow and electric system debt service coverage of 2.70 times (x) in fiscal 1992. While the authority is required to transfer money annually to the city's general fund, the use of a set formula is considered sound business practice.
 Although the strong U.S. Navy concentration in the service area is a concern, the diversity of military operations helps mitigate this risk. Combined, the area's three bases account for less than 5 percent of total electric sales.
 -0- 5/25/93
 /CONTACT: Susan M. Courtney, 212-908-0503 or Alan Spen, 212-908-0594, both of Fitch/


CO: Jacksonville Electric Authority ST: Florida IN: UTI SU: RTG

SM -- NY074 -- 2202 05/25/93 13:22 EDT
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Publication:PR Newswire
Date:May 25, 1993
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