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TEXAS UTILITIES $425 MILLION SHELF DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 TEXAS UTILITIES $425 MILLION SHELF DEBT RATED 'BBB' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, March 27 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new $425 million shelf registration of first mortgage and collateral trust bonds is rated "BBB" by Fitch. The credit trend is stable.
 Combined with an existing registration of $75 million, TUEC has $500 million in first mortgage and collateral trust bonds on the shelf. TUEC plans to issue debt to refund higher coupon bonds. For example, it will redeem $250 million 10.5 percent bonds due April 1, 2017 at a price of 107.88 plus interest.
 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 the next rate case in time to bond rates at Comanche Peak 2's 1993 commercial operation date. Earnings quality and cash flow protection measures are recovering modestly. Internal generation improved to 19 percent in 1991 from 4 percent the year earlier and 1991's pre-tax interest coverage without allowance for funds used during construction (AFUDC), adjusted to exclude a $1.3 billion writeoff, was 1.71 times (x) versus 1.70x in 1990.
 TUEC recently changed its construction schedule in response to decreased estimates of customer demand growth and the deferral of retirements of some gas-fueled generating units. Construction expenditures including AFUDC were $901 million in 1991. This figure is expected to fall to $790 million in 1992 and $720 million in 1993, which are $430 million and $409 million below previous estimates, respectively. Construction expenditures in 1994 are expected to be $930 million.
 The utility expects its nuclear Comanche Peak Unit 2 to go into service during the 1993 peak season, as expected, but deferred the in- service date of two lignite-fueled Twin Oak units by roughly two years to 1997 and 1998, respectively. Two other non-nuclear units originally scheduled for service late this decade have been deferred beyond TUEC's 10-year planning horizon.
 -0- 3/27/92
 /CONTACT: Anne F. Faber of Fitch, 212-908-0566/ CO: Texas Utilities Electric Co. ST: Texas IN: UTI SU: RTG


SH -- NY014 -- 2266 03/27/92 09:30 EST
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Date:Mar 27, 1992
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