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TEXAS UTILITIES ELECTRIC $500 MILLION SENIOR DEBT RATED 'BBB' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, July 8 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) new $500 million first mortgage and collateral trust bonds are rated "BBB" by Fitch. The bonds are a takedown from a previously rated shelf registration. The credit trend is stable. The new issue includes $150 million 5 3/4 percent noncallable bonds due July 1, 1998, $100 million 6 3/4 percent noncallable bonds due July 1, 2005 and $250 million 7 5/8 percent bonds, noncallable for 10 years, due July 1, 2025. The proceeds will be used to redeem the following two series of first mortgage and collateral trust bonds: $200 million 9 3/8 percent due March 1, 2016 and $250 million 9 1/4 percent due February 1, 2017.
 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.
 In January, the company filed a $760 million, or 15.3 percent, rate increase which reflects, among other items, the recovery of the remaining investments associated with both Comanche Peak units. Unit 1 began commercial operation in 1990; Unit 2 is expected to commence full commercial operation this summer. In April, the staff of the Public Utility Commission of Texas (PUC) 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 has also proposed a $4.4 billion cap on Unit 2 construction costs. A full staff rate recommendation is expected to be filed in late July. The company will aggressively contest these staff recommendations. The company can place the requested increase into effect under bond and subject to refund at the beginning of August. A final PUC decision is possible by the end of 1993.
 Construction expenditures, which are below previous levels, excluding allowance for funds used during construction, are estimated at $580 million in 1993, $560 million in 1994, and $790 million in 1995. Over the next 10 years, the company expects to provide approximately 18 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- 7/8/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/


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

TM-MG -- NY101 -- 9716 07/08/93 17:56 EDT
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Date:Jul 8, 1993
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