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ORLANDO UTILITIES COMMISSION $140 MILLION WATER AND ELECTRIC REVENUE BONDS, SERIES 1993 RATED 'AAA' BY DUFF & PHELPS

 CHICAGO, Sept. 8 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned ratings of `AAA' (Triple-A) to Orlando Utilities Commission's (OUC) proposed offering of $140 million of water and electric revenue bonds, Series 1993. The short-term portion of the auction rate securities, if any, will carry the Duff 1+ (One-Plus) rating. Proceeds primarily will be used to finance capital improvements at the Stanton Energy Center Unit No. 2.
 Should the short-term component of the auction rate securities disappear through a recombination with the longer term component, or, should the auction process cease to function, the Duff 1+ rating would no longer apply, since the securities would no longer possess their short-term characteristics. The obligation of OUC to pay debt service on these auction rate securities is long term in nature. The bonds are secured solely by a senior lien pledge of net revenues derived by the OUC from the operation of the water and electric system. The debt service reserve account, fully funded at time of issuance, requires that an amount equal to the lesser of 10 percent of the original proceeds, maximum annual debt service, or 125 percent of average annual debt service be maintained.
 OUC's electric and water utilities have demonstrated excellent operational and financial characteristics. Debt service has been maintained well above the required minimum indenture levels (1.89 times for all debt in fiscal 1992). OUC has a competitive cost structure, a diversified and growing service area, and well-maintained facilities. Base load growth will be met by construction of the 440 mw coal-fired Stanton Energy Center Unit No. 2. Construction began in March 1993 with commercial operation expected in June 1996. OUC will operate the new unit and will have a 71.59 percent ownership interest. Despite significant new money needs, coverages are expected to remain strong. OUC exercises full authority over its rates and operations, which are governed by a five-member independent commission.
 The expected closure of the Orlando based Naval Training Center, OUC's largest water customer and second largest electric customer, is expected to occur in stages over several years and is not expected to have a significant impact on OUC's credit quality.
 OUC supplies electric and water service to Orlando and contiguous areas in Orange County, Florida. Electric operations provide the bulk of operating revenue. OUC has full or partial ownership interests in five generating facilities and a diversified energy mix of coal, natural gas, nuclear and oil.
 -0- 9/8/93
 /CONTACT: John C. Dell of Duff & Phelps Credit Rating Co., 312-368-3161/


CO: Orlando Utilities Commission ST: Florida IN: UTI SU: RTG

SM -- NY061 -- 9859 09/08/93 13:19 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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