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KAISER STEEL RESOURCES ANNOUNCES INCREASED REVENUES TIED TO MWD RATE HIKES

 RANCHO CUCAMONGA, Calif., March 15 /PRNewswire/ -- Kaiser Steel Resources Inc. (NASDAQ: KSRI) today announced that revenues from its water resources are estimated to increase 18.2 percent per acre foot of water beginning July 1, 1993 because of the 18.2 percent rate increase announced last week by the Metropolitan Water District of Southern California (MWD). This latest increase by MWD translates into a 61-percent increase over the last two years in the price Kaiser receives for its water resources.
 Kaiser owns 51 percent of Fontana Union Water Co., a California mutual water company. The company leases its water resources to Cucamonga County Water District in a 102-year take-or-pay agreement with lease revenues tied to MWD rates. As a result of MWD rate increases, Kaiser's lease rates increased 21.2 percent effective July 1992, following a 12.5 percent increase in July 1991. To meet its capital project needs, MWD has projected average annual increases of 11 percent through the year 2000.
 According to Daniel N. Larson, president of Kaiser Steel Resources Inc., "This rate hike will dramatically increase our water revenues during 1993 and beyond. Since there are minimal costs associated with this asset, and since almost all our revenues are exempt from federal tax liability due to our $105 million net operating loss carryforwards (NOLs), this income will go straight to the bottom line."
 Larson added, "For the water year beginning July 1, 1993, revenues from our water assets will increase approximately $700,000 over our original estimate of approximately $4 million. MWD's rate hike confirms our belief that our water resources are a growing asset and will continue to generate long-term revenues for the company."
 In making the announcement of the rate increase, MWD General Manager Carl Boronkay said, "The rate increase will pay for projects and programs to restore reliable water supplies and upgrade water quality for Southern California." He added, "Six years of drought demonstrated the need for improved water distribution systems serving MWD's 5,200-square-mile service area. Our water reliability plan will include new storage and supply facilities, agricultural water purchases, and a comprehensive program of conservation and reclamation projects."
 Kaiser Steel Resources Inc. in an emerging environmental resources company pursuing projects that address critical issues in Southern California, including solid waste management, water resources, and property redevelopment.
 -0- 3/15/93
 /CONTACT: Daniel N. Larson, president of Kaiser Steel Resources, 909-944-4155; or Eugene G. Heller of Silverman Heller Associates, 310-208-2550, for Kaiser Steel Resources/
 (KSRI)


CO: Kaiser Steel Resources Inc. ST: California IN: MNG SU:

MS-LS -- LA019 -- 6085 03/15/93 13:59 EST
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Publication:PR Newswire
Date:Mar 15, 1993
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