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SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT NO. 1 (WASH.) $95M REVENUE BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 10 /PRNewswire/ -- Public Utility District No. 1 of Snohomish County, WA's $95 million series 1993B generation system revenue bonds are rated 'A+' by Fitch. The district's $447.2 million 'A+' series 1993 generation system revenue bonds and $86.1 million 'A+' series 1991A and 1991B electric system revenue bonds are affirmed. The credit trend is stable.
 The rating reflects the district's low average rates, sound financial condition, and good management. Proceeds of the new issue will fund construction of the solid waste facility portion of a cogeneration project at the Scott Paper Co. pulp and paper production plant in Everett, WA. The cogeneration project is scheduled to operate commercially in August 1996. In line with the district's long-term strategy to diversify power supplies, the project is expected to supply a portion of new load requirements at a cost that compares favorably Bonneville Power Administration (BPA) firm energy rates.
 The district will own major plant components and lease plant property, a recovery boiler, and baghouse from Scott. Scott will construct and operate the facility, which is expected to provide the district with 325,000 megawatt-hours of electric energy per year (about 5 percent of 1993 requirements) and supply steam required to run the paper plant. During the first 12 years of the project's operation, the district will sell about 85 percent of the electric capacity to Sacramento Municipal Utility District.
 The district raised rates by 16 percent in November for the first time in 10 years, reflecting higher BPA rates and other costs. While additional increases are projected in 1995 and 1997, the district's sensitivity analysis of revenue requirements under a variety of growth assumptions and even higher BPA rates show average rates increasing to only 5.4 cent/kwh to 6.5 cents/kwh by 1997. For the twelve month period ending June 1993, average rates were 4 cents/kwh.
 Although debt service coverage of electric system revenue bonds has declined from strong historical levels of at least 3.0 x, coverage should approximate 2.0x-2.5x over the next five years.
 -0- 11/10/93
 /CONTACT: Josephine Zeppieri, 212-908-0582, or Alan Spen, 212-908-0594, both of Fitch/


CO: ST: Washington IN: UTI SU: RTG

SH -- NY069 -- 2798 11/10/93 13:26 EST
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Date:Nov 10, 1993
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