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TEXAS UTILITIES ELECTRIC $125 MILLION PREFERRED ISSUE RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE

 NEW YORK, July 19 /PRNewswire/ -- Texas Utilities Electric Co.'s five million depositary shares, each representing one-quarter share of cumulative preferred stock, are rated 'BBB-' by Fitch. The issue is a takedown from a previously rated shelf registration. Proceeds will be used to redeem all outstanding shares of the company's $9.32, $9.36, $10, and $10.08 series of cumulative preferred stock, which the company has called for redemption on Aug. 5, 1993. The credit trend is stable.
 The rating reflects Fitch's expectations that key financial measurements will improve significantly once the Comanche Peak nuclear plant is reflected substantially in base rates.
 In January, the company filed a $760 million, or 15.3 percent, rate increase which reflects, among other items, recovery of the remaining investments associated with both Comanche Peak units. The company can place the requested increase into effect under bond and subject to refund at the beginning of August. Unit 1 began commercial operation in 1990; unit 2 is expected to commence full commercial operation this summer. In April, the Texas Public Utility Commission (PUC) staff initially recommended a rate increase, exclusive of Comanche Peak prudency considerations, of $580 million or 11.7 percent. Subsequent testimony filed by PUC staff proposed a revised $265 million prudency rate base exclusion, reduced from $462 million, of Comanche Peak investment. The staff proposed a $4.4 billion cap on unit 2 construction costs. However, on July 12, the company announced a stipulated settlement agreement with the Office of Public Utility Counsel, the General Counsel of the PUC, and the Executive Committee of the Coalition of Cities served which if finalized and approved by the PUC, would settle and resolve all prudence and fuel phases of the pending rate case. Hearings on the supplemental revenue requirement phase are scheduled to start Aug. 17.
 The settlement would result in a disallowance of $250 million of Comanche Peak capital expenditures plus $83 million of associated allowance for funds used during construction and a $5 million fuel refund. Additionally, the company would be permitted to recover $197 million of expenses incurred with its cost reduction program amortized over eight years. Although testimony will be filed, the stipulation does not require hearings on the prudence and fuel phase of the rate case. The PUC staff will file revised testimony and revenue requirements Aug. 9. A final PUC decision is possible by the end of 1993.
 -0- 7/19/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/


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

PS -- NY053 -- 3038 07/19/93 12:13 EDT
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Date:Jul 19, 1993
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