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SAM RAYBURN MUNICIPAL POWER AGENCY (TEXAS) BONDS RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 4 /PRNewswire/ -- Sam Rayburn Municipal Power Agency's (Texas) $164.6 million power supply system revenue refunding bonds, series 1993A are rated "BBB-" by Fitch. The credit trend is stable. The bonds are scheduled to sell on a negotiated basis the week of January 11 by a Paine Webber Inc. syndicate.
 Due to slower than expected growth in energy demand, the agency finds itself with a large amount of excess generating capacity. The situation will worsen as a sell-back arrangement with Gulf States Utilities terminates in 1996. While the agency's ability to market this excess capacity and energy would improve its position, they have been unsuccessful to date in securing meaningful off-system power sales contracts. Sam Rayburn's adoption in early 1992 of a more active approach in marketing its excess power is noted as a positive, but it is too soon to assess the results of these efforts.
 Financial performance of the agency has been satisfactory and will be helped over the near term by the savings provided through the refunding program. However, electric rates to the participants are high and will rise further, with annual increases projected throughout the decade, unless new utility customers are added.
 The agency's four members' service areas are below average economically and have experienced little or no historical growth in energy sales, with only nominal growth forecast through 2007. Despite this, the good relationship between the agency and its members is important, including the participants' demonstrated history of increasing electric rates when necessary.
 -0- 1/4/93
 /CONTACT: Alan Spen, 212-908-0594, or Susan M. Courtney, 212-908-0503, both of Fitch/


CO: Sam Rayburn Municipal Power Agency ST: Texas IN: SU: RTG

TS -- NY049 -- 1313 01/04/93 12:17 EST
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Date:Jan 4, 1993
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