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TEXAS UTILITIES $500 MILLION 1ST MORTGAGE & COLLATERAL TRUST BOND SHELF 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 6 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new $500 million shelf registration for first mortgage and collateral trust bonds is rated 'BBB' by Fitch. The new issue, when combined with the remaining portion of a previously rated shelf, enables the company to issue as much as $800 million of first mortgage and collateral trust bonds. The credit trend is stable. Proceeds, combined with funds from operations, will be used to fund construction expenditures, for the redemption of certain fixed-rate securities, and for the repayment of short-term debt.
 The rating reflects Fitch's expectations that key financial measurements will improve significantly once the Comanche Peak nuclear plant is substantially reflected in base rates. On Jan. 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 net savings from company restructuring and workforce reductions, and annual interest savings of about $50 million due to almost $2 billion of debt refinancing since 1989.
 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 Feb. 2, the Nuclear Regulatory Commission granted approval to start low-power testing of Comanche Peak Unit 2. Low power testing was completed in March and a vote on the full power license is expected shortly. 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 18 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- 04/06/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/


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

AH -- NY047 -- 3442 04/06/93 12:41 EDT
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Publication:PR Newswire
Date:Apr 6, 1993
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