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VIRGINIA ELECTRIC $135 MILLION SENIOR DEBT RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, April 21 /PRNewswire/ -- Virginia Electric and Power Co.'s (VPC) $135 million new issue of 5.875 percent first and refunding mortgage bonds, due May 1, 2000, is rated `A+' by Fitch. The credit trend is stable. This is a takedown from a 1992 shelf registration.
 While VPC's balance sheet improved, with common equity increasing to 44 percent of total capitalization, milder than normal weather throughout 1992 impacted operating income and interest coverage. Operating income in 1992 was $761.5 million versus the prior year's $816.8 million. To bolster coverage, VPC continues to aggressively refund debt to achieve interest savings. The embedded cost of long-term debt was lowered from 8.43 percent as of December 1991 to 7.86 percent in 1992.
 Recently granted rate increases and a pending rate decision should enhance earnings protection measures. In December, the Virginia State Corporate Commission permitted a $45.2 million rate increase and currently the VSCC staff is recommending another 8.6 percent, or $260 million, increase. Additionally, in March, VPC's base rates for North Carolina customers were increased by $12.4 million.
 VPC recently lowered its expected 20-year annual growth rate to 2.2 percent from 2.5 percent. Consequently, VPC has deferred addition of base load plant to year 2002, except for the 782 megawatt Clover coal- fired plant now under co-development with Old Dominion Electric Cooperative. More moderate growth will reduce cash requirements in VPC's distribution segment and improve internal generation of cash, now at 68.5 percent of capital expenditures.
 VPC continues with above industry performance at its four nuclear units with competitive electricity production cost at 2.8 cents/kwh. On April 10, VPC restarted its North Anna-1 nuclear plant following successfully replacing 3 steam generators at a cost $55 million under the original $185 million estimate.
 VPC, headquartered in Richmond, is the principal subsidiary of Dominion Resources, Inc. VPC provides electric service to 80 percent of the residents of Virginia and to portions of North Carolina.
 -0- 4/21/93
 /CONTACT: John Watt of Fitch, 212-908-0523/
 (D)


CO: Virginia Electric and Power Co. ST: Virginia IN: UTI SU: RTG

SM -- NY115 -- 9002 04/21/93 17:11 EDT
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Date:Apr 21, 1993
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