JERSEY CENTRAL POWER & LIGHT COMPANY$40 MILLION SECURED MEDIUM-TERM NOTES, SERIES C RATED 'A'
CHICAGO, Feb. 11 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of A' (Single-A) to Jersey Central Power & Light Company's proposed offering of $40 million of secured medium-term notes, Series C. Jersey Central Power & Light, a subsidiary of General Public Utilities Corporation (GPU), has maintained relatively stable credit protection measures in recent years. Future improvement is limited by the sluggish service territory economy, and growing construction expenditures and related financing. Ongoing regulatory support will be necessary. A base rate case requesting an increase of $221 million is pending. An Administrative Law Judge recommended a $127 million increase based on a 12.2 percent return on equity, in January 1993. A final decision is expected in March. The company is heavily dependent on purchased power. A low reserve margin increases risk both in terms of new base load capacity requirements and replacement of old plant. Jersey Central Power & Light Company provides electric service to approximately 887,000 customers in northwestern and east central New Jersey. Jersey Central is the largest revenue producer in the GPU system. In addition to its 25 percent ownership interest in the Three Mile Island nuclear station, Jersey Central is the sole owner of the Oyster Creek nuclear unit. -0- 2/11/93 /CONTACT: John C. Dell of Duff & Phelps, 312-368-3161/ (GPU)
CO: Jersey Central Power & Light Company ST: New Jersey IN: UTI SU: RTG
KD -- NY092 -- 5920 02/11/93 17:27 EST
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|Date:||Feb 11, 1993|
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