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VIRGINIA ELECTRIC $200 MILLION MEDIUM-TERM NOTES RATED 'A' BY FITCH -- FITCH FINANCIAL WIRE --

VIRGINIA ELECTRIC $200 MILLION MEDIUM-TERM NOTES RATED 'A' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 13 /PRNewswire/ -- Virginia Electric and Power Co.'s new $200 million multicurrency unsecured Medium-Term Notes, Series E, (shelf) are rated "A" by Fitch. The credit trend is stable. Affirmed are the outstanding $2.6 billion first and refunding mortgage bonds at "A+", its $285 million Series D medium-term notes and $765.7 million preferred stock at "A", and its $388.6 million money-market municipal pollution control revenue bonds at "A"/"F-1". The "F-1" commercial paper program for V.P. Fuel Corp., which Virginia Electric is beneficiary, is affirmed.
 Virginia Electric is a major subsidiary of Dominion Resources. Financial protection measures are beginning to show modest turnaround, reflecting an $80 million rate increase granted last April. A decision on a requested rate increase of $183.9 million is expected by second quarter 1992. Higher rates were put into effect on Sept. 1, subject to refund. The majority of the increase is for purchased power costs.
 Pretax interest coverage increased to 2.92 times (x) for the 12 months-ended Sept. 30 from 2.74x at year-end 1990. Internal cash flow as a percent of construction outlays improved to 78 percent, from 62 percent over this same period. Capitalization remains conservative at 48 percent total debt, 9 percent preferred stock, and 43 percent common equity. Partly due to slower sales growth, future capital outlays have been reduced to reflect a one-year delay for the two coal-fired Clover units to 1995 and 1996, respectively, and the proposed 400-megawatt coal-fired unit is being postponed indefinitely. While expenditures for 1991-93, including allowance for funds used during construction, are estimated at $2.7 billion, internal cash generation should continue to provide about 60 percent of construction costs. Based on these in-service date changes, construction expenditure levels are being reviewed.
 Fitch views the latest decision granting about 80 percent of the requested rate increase as favorable. Rating maintenance is predicated on the continuation of this regulatory environment. Virginia Electric, headquartered in Richmond, provides electric service to a 30,000 square-mile area of Virginia and portions of North Carolina.
 -0- 12/13/91
 /CONTACT: Anne Faber of Fitch, 212-908-0566/
 (D) CO: Virginia Electric and Power Co. ST: Virginia IN: UTI SU: RTG SH -- NY055 -- 2494 12/13/91 16:12 EST
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Date:Dec 13, 1991
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