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PE ANNOUNCES REFUNDING OF $160.56 MILLION OF TAX-EXEMPT DEBT

 PE ANNOUNCES REFUNDING OF
 $160.56 MILLION OF TAX-EXEMPT DEBT
 PHILADELPHIA, Dec. 13 /PRNewswire/ -- Capping off a successful year of reducing its financing costs by eliminating high interest debt, Philadelphia Electric Co. (NYSE: PE) announced today acceptance of 56 percent, or $160.56 million, of a tender offer of up to $286 million of tax-exempt bonds.
 The effective annual interest savings from the transaction amount to about $5.6 million, bringing total annualized interest savings from all company debt refundings and retirements during 1991 to approximately $53 million.
 The tax-exempt modified Dutch Auction transaction was only the third in recent years and the most successful for any utility in the nation, and it marked the first tender and largest refinancing of tax-exempt debt by PE.
 The Montgomery County Industrial Development Authority has agreed to sell $160.56 million aggregate principal amount of Pollution Control Revenue Refunding Bonds, 1991 Series B (Philadelphia Electric Company Project) for the purpose of paying a portion of the costs of refunding through the auction $160.56 million aggregate principal amount of the authority's 10-1/2 percent Pollution Control Revenue Bonds, issued in 1985.
 Under the auction, the company agreed today to purchase $139.55 million of 1985 Series A Bonds at 122 percent of par and $21.01 million of 1985 Series B Bonds at 122.89 percent of par plus accrued interest to the settlement date, Dec. 18, 1991.
 The company's invitation to bondholders to sell the 1985 Series A and Series B Bonds expired at noon on Dec. 11, 1991.
 The 1991 Series B Bonds to be issued by the Montgomery County Industrial Development Authority will bear interest at 6.70 percent per annum and mature Dec. 1, 2021.
 The proceeds of such bonds, together with other funds provided by the company, will be used to redeem the 1985 Series A and B Bonds purchased by the company under the modified Dutch Auction.
 /delval/
 -0- 12/13/91
 /CONTACT: Bill Jones of Philadelphia Electric, 215-841-4129/
 (PE) CO: Philadelphia Electric Company ST: Pennsylvania IN: UTI SU: OFR


LJ -- PH009 -- 2281 12/13/91 10:03 EST
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Publication:PR Newswire
Date:Dec 13, 1991
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