PSI ENERGY $200 MILLION CUMULATIVE PREFERRED STOCK (SHELF) RATED 'BBB'
CHICAGO, Feb. 2 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of BBB' (Triple-B) to PSI Energy, Inc.'s shelf registration for 4.68 million shares cumulative preferred stock (par value $25) and two million shares cumulative preferred stock (par value $100). The maximum aggregate par value of cumulative preferred stock offered will be $200 million. The securities, when issued, will join the outstanding fixed income securities on Rating Watch -- Neutral/Favorable, where they were placed Dec. 14, 1992. Proceeds will be used for general corporate purposes. In December 1992, parent PSI Resources, PSI Energy, and Cincinnati Gas & Electric agreed to merge into a newly created corporation named CINergy. Under the new structure, PSI Energy and Cincinnati Gas & Electric will operate as divisions of CINergy. The service territories of the two companies are contiguous, and the combined company should realize savings from reduced fuel expenditures, lower operation and maintenance costs, the elimination of overlapping functions, and lower new capacity needs for the combination than for the two companies operating separately. PSI Energy's planned construction of a 100MW unit planned for operation in 1995 may be canceled if the merger is consummated. Regardless, PSI Energy will require additional rate relief for its substantial clean air compliance expenditures. The company estimates its compliance costs to be $1.2 billion over the 1992-2000 period. PSI Energy currently provides electric service in the lower two-thirds of Indiana. The combined entity will serve approximately 1.3 million electric customers and 400,000 gas customers in a 25,000 square mile area of Ohio, Indiana and Kentucky. -0- 2/2/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps, 312-368-3112/ (PIN)
CO: PSI Energy, Inc. ST: Ohio IN: UTI SU: RTG
SH -- NY078 -- 1960 02/02/93 14:10 EST
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|Date:||Feb 2, 1993|
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