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TEXAS UTILITIES $800 MILLION FIRST MORTGAGE & COLLATERALIZED TRUST BONDS 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Feb. 19 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new $800 million shelf registration of first mortgage and collateralized trust bonds are rated "BBB" by Fitch. The credit trend is stable. Proceeds, combined with funds from operations, will be used to fund construction expenditures, 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 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 $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- 2/19/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (TXU)


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

TS -- NY016 -- 8298 02/19/93 09:35 EST
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Date:Feb 19, 1993
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