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TEXAS UTILITIES $50 MIL. PFD. STOCK RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, March 25 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new $50 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 expectations that key financial measurements will improve significantly once the Comanche Peak nuclear plant is fully reflected in base rates. On January 22, the company filed for a $760 million or 15.3 percent electric rate increase largely reflecting the addition of the company's remaining investment of about $1.3 billion in Comanche Peak Unit 1 and about $3.2 billion in Comanche Peak Unit 2. This increase is based on a 12.5 percent return on common equity representing 41.52 percent of capitalization. The request also reflects about $117 million of post-June 1992 test year savings from company restructuring and work force reductions and annual interest savings of about $50 million due to almost $2 billion of debt refinancing since 1991.
 The company can place rates into effect under bond and subject to refund at the beginning of August. A final commission decision is possible by the end of 1993. A negotiated settlement is possible by late summer if sufficient interest develops and extends beyond the company and the staff of the commission. On February 2, the Nuclear Regulatory Commission granted approval to start low-power testing of Comanche Peak Unit 2. Full commercial operation is expected during the summer of this year. Unit 1 began commercial operation in 1990.
 Construction expenditures, excluding allowance for funds used during construction, are estimated at $580 million in 1993, $560 million in 1994, and $790 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 Comanche Peak 2, the company plans to add 1,580 megawatts of gas-fueled combustion turbines between 1998 and 2002.
 -0- 3/25/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/


CO: Texas Utilities Electric Company ST: New York IN: UTI SU: RTG

TM -- NY092 -- 9849 03/25/93 18:17 EST
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Date:Mar 25, 1993
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