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TEXAS UTILITIES ELECTRIC COMPANY $75 MILLION CUMULATIVE PREFERRED STOCK RATED 'BBB-' BY DUFF & PHELPS

 CHICAGO, March 25 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of `BBB' (Triple-B) to Texas Utilities Electric Company's proposed offering of $75 million of cumulative preferred stock without par.
 Common equity issuances have helped Texas Utilities Electric maintain a firm financial base during a period of strong capital growth, and have cushioned the effect of the 1991 write-off associated with Unit 1 of the Comanche Peak nuclear project. Construction cuts, operating cost containment measures, and refundings of higher coupon debt have been undertaken. Completion of the Twin Oaks facility (two 750 mw lignite units) has been deferred by two years to 1999 and 2000. Other baseload construction, originally scheduled for the end of the decade, has been deferred beyond the year 2000.
 Texas Utilities Electric has made a substantial capital investment in the Comanche Peak nuclear project. A 1991 rate order to recover costs associated with Comanche Peak Unit 1 was stringent. In September 1992, the Texas District Court upheld the $472 million prudence disallowance for Comanche Peak Unit 1. However, the $884 million disallowance related to repurchasing a 12.2 percent interest from co-owners was reversed and remanded to the Public Utilities Commission of Texas. Adequate rate relief in respect of the second Comanche Peak unit, scheduled for service in mid-1993, will be important to sustained improvement in financial measures.
 Texas Utilities Electric Company, a subsidiary of Texas Utilities Company, provides electric service to 2.1 million customers. The 65,000 square mile service area includes parts of north central, eastern, and western Texas. A principal load center is the Dallas/Fort Worth metropolitan area.
 -0- 3/24/93
 /CONTACT: William A. Abrams of Duff & Phelps Credit Rating Co., 312-368-3112/
 (TXU)


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

SM -- NY052 -- 9146 03/24/93 13:37 EST
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Publication:PR Newswire
Date:Mar 24, 1993
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