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MONONGAHELA POWER $155 MILLION SHELF DEBT RATED 'AA-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 7 /PRNewswire/ -- Monongahela Power Co.'s $155 million first mortgage bond shelf registration is rated 'AA-' by Fitch. The credit trend is stable.
 The rating reflects the company's sound credit fundamentals, the financial and operating support provided by its parent, Allegheny Power System, Inc., and a constructive ruling from the West Virginia Public Service Commission (PSC) regarding the treatment of Clean Air Act (CAA) related expenditures. The PSC, which regulates 89 percent of Monongahela's revenues, determined that the Allegheny system's CAA compliance plan was prudent and authorized the cash recovery of CAA capital costs subject to annual energy clause proceedings. Rating maintenance also assumes constructive rate increases for attrition- related rate filings.
 Monongahela Power is a wholly owned operating subsidiary of the Allegheny Power System, Inc. Allegheny plans to comply with 1990 Clean Air Act phase I requirements by building three scrubbers at its mine- mouth Harrison plant at a total cost of $726.6 million including AFUDC. Monongahela's share of these costs is $181.9 million.
 Total debt as a percent of capitalization was 50.4 percent at Sept. 30. The company received a $40 million equity infusion in September from the proceeds of a parent company common stock offering that raised approximately $87 million. Pretax interest coverage, including AFUDC and subsidiary Allegheny Generating Co. interest expense, was 3.05 times for the 12 months ended Sept. 30. Internal cash generation funded 53.9 percent of construction expenditures for the same period. Based on favorable acid rain treatment, internal generation and pretax interest coverage should approach levels more appropriate for the rating category by 1995 when scrubber construction expenditures decline.
 -0- 1/7/93
 /CONTACT: Josephine Zeppieri, CFA, 212-908-0575, of Fitch/
 (AYP)


CO: Monongahela Power Co.; Allegheny Power System, Inc. ST: West Virginia, New York IN: UTI SU: RTG

LR -- NY088 -- 5594 01/07/93 15:13 EST
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Publication:PR Newswire
Date:Jan 7, 1993
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