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TEXAS UTILITIES $100 MILLION PREFERRED STOCK RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Jan. 5 /PRNewswire/ -- Texas Utilities Electric Co.'s (NYSE: TXU) (TUEC) new $100 million issue of preferred stock is rated 'BBB-' by Fitch. The issue is a takedown from a previously rated shelf registration. The credit trend is stable. Proceeds will be used to fund construction expenditures, repay short-term debt, and for other corporate purposes.
 The rating reflects Fitch's expectation that key financial indicators will move to much stronger levels once all of the Comanche Peak nuclear plant is reflected in rates. The company expects to file a rate request in time to bond rates at Comanche Peak Unit 2's commercial operation date, which is expected to occur during the 1993 summer peak season.
 In addition, TUEC should benefit from an early retirement and voluntary separation program offered in June. About 30 percent of parent Texas Utilities System Co.'s employees accepted one of these plans. The initial cost, estimated at about $260 million, has been deferred and TUEC intends to request recovery of these costs in the next rate case.
 Lower revenue and energy sales for the 12 months ended November 1992 continue to reflect milder than normal temperatures and general economic weakness in the company's service territory. Normalized to exclude a $1.4 billion writeoff, pre-tax interest coverages for the 12 months ended Sept. 30 increased to 2.44 times(x) from 2.32x for 1991. Internal cash generation increased to 28.7 percent vs. 19 percent for 1991.
 Construction expenditures, excluding allowance for funds used during construction, are estimated at $640 million in 1993, $650 million in 1994, and $880 million in 1995. The expenditures for 1993 and 1994 represent a decline of $80 million and $280 million, respectively, compared to prior estimates. The reduction reflects the two-year deferral of the in-service date of the two 750 megawatt lignite-fueled Twin Oak units until 1999 and 2000, respectively.
 Over the next ten years, the company expects to provide approximately 23 percent of estimated energy needs through conservation and load management programs. In addition to Commanche Peak 2, the company plans to add 1,580 megawatts of gas-fueled combustion turbines between 1998 and 2002.
 -0- 1/5/93
 /CONTACT: Stephen Fedun, 212-908-0568, of Fitch/
 (TXU)


CO: Texas Utilities Electric Co. ST: Texas IN: UTI SU: RTG

LR -- NY059 -- 1781 01/05/93 13:28 EST
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Date:Jan 5, 1993
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