Printer Friendly

TEXAS UTILITIES ELECTRIC $75 MILLION OF CUMULATIVE PREFERRED STOCK RATED 'BBB-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Sept. 29 /PRNewswire/ -- Texas Utilities Electric Co.'s (TUEC) (NYSE: TXU) new shelf registration of 750,000 cumulative preferred shares is rated "BBB-" by Fitch. When combined with a previously rated outstanding shelf registration, TUEC can issue up to 2 million shares or $200 million of cumulative preferred stock. The credit trend is stable.
 Proceeds are expected to be used for the repurchase or redemption of securities, construction expenditures, and other corporate purposes. The rating reflects Fitch's expectation 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 based on a 12.5 percent rate of return on common equity (ROE). The increase reflects, among other items, recovery of the remaining investments associated with both Comanche Peak nuclear units. The company placed 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 commenced full commercial operation on August 3. On August 27, the staff of the Public Utility Commission (PUC) filed revised testimony recommending an annual increase of 8.5 percent or $425 million based on a 11.5 percent ROE. The recommendation excludes about $119 million for school district property taxes which if adopted would be inconsistent with previous regulatory treatment. A final PUC decision is possible by the end of 1993.
 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 by the company which if approved by the PUC, would settle all Comanche Peak prudence issues through commercial operation of unit 2 and would allow the recovery of about $4.6 billion of fuel costs incurred for three years prior to June 30, 1992.
 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 respect to its cost reduction program to be amortized over eight years. A final separate decision by the PUC on the proposed settlement part of the pending rate case is possible by the end of October.
 -0- 9/29/93
 /CONTACT: Stephen Fedun of Fitch, 212-908-0568/
 (TXU)


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

LG -- NY057 -- 6895 09/29/93 14:37 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 29, 1993
Words:433
Previous Article:LEWIS RESOURCES ACQUIRES GALLIUM ARSENIDE INDUSTRIES
Next Article:EPA ASKS THE PUBLIC TO JOIN EFFORT TO 'HELP THE HARBOR!'
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters