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VIRGINIA ELECTRIC HALIFAX COUNTY IDA BONDS RATED 'A/F-1' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 20 ~PRNewswire~ -- The Industrial Development Authority of Halifax County, Va.'s $56 million Virginia Money Market Municipals Pollution Control Revenue Bonds, (Virginia Electric and Power Co. Project) Series 1992 are rated 'A~F-1' by Fitch. The credit trend is stable.
 The 'F-1' rating refers to the demand features of these bonds. Payment of principal and interest is supported by a remarketing agreement where the remarketing agent has agreed to use its best efforts for resale of the bonds in the secondary market. Also, in the event the remarketing proceeds are insufficient, then the bonds shall be paid by Virginia Power under a note.
 While financial protection measures have improved for this major subsidiary of Dominion Resources, Inc., as partly evidenced by cost reductions, the milder than normal weather has not helped strengthen the recovery. For the twelve months ended June 30, SEC pre-tax interest charge coverage was 2.94 times (x) vs. 2.93x at year-end 1991. Additionally, a $26 million refund ordered by the Virginia State Corporation Commission affected earnings. This refund was the result of a remand by the Virginia Supreme Court of the utility's 1990 rate increase.
 Furthermore, two cases regarding rate increases for Virginia Power are pending before the commission. The first case, filed in 1991, asks for $158 million; the second, filed in 1992, requests another $166 million. The utility put the higher rates from the first case into effect on Sept. 1, 1991, based on the 13 percent equity return last authorized, subject to refund. The 1992 rates were put in effect, subject to refund, on Oct. 21. The hearing examiner for the 1991 rate case recommended an increase of $41.3 million in October and also recommended that recovery of $67.7 million of projected purchase capacity costs for the period after Dec. 31, 1991 be disallowed. These costs would then be recovered in a future rate case. The 1992 rate case hearings are set to begin March 8, 1993.
 Virginia Electric, headquartered in Richmond, provides electric service to a 30,000 square-mile area of Virginia and portions of North Carolina.
 -0- 11~20~92
 ~CONTACT: Anne F. Faber of Fitch, 212-908-0566~
 (D)


CO: Virginia Electric; Dominion Resources, Inc. ST: Virginia IN: UTI SU: RTG

AH-WB -- NY054 -- 3578 11~20~92 17:28 EST
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Date:Nov 20, 1992
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