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WEST PENN POWER $135 MILLION FIRST MORTGAGE BONDS 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 WEST PENN POWER $135 MILLION FIRST MORTGAGE BONDS 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Sept. 10 /PRNewswire/ -- West Penn Power Co.'s $135 million 7.875 percent first mortgage bonds due 2022 are rated "A+" by Fitch. The issue is a takedown from a previously rated shelf registration.
 The rating reflects significant acid rain expenditures and uncertain regulatory treatment by the Pennsylvania Public Utility Commission.
 The commission, which regulates 98 percent of West Penn's revenues, issued a noncommittal prudency decision on the company's acid rain compliance plan and denied the company's request to recover actual acid rain related costs through a surcharge. As a result, West Penn's parent, Allegheny Power System Inc., indicated it may provide less equity support. Although the company will continue to benefit from its access to substantial resources from the integrated Allegheny System, reduced parent equity support and increased capital requirements are expected to result in weakened financial protection measures for West Penn.
 Allegheny plans to comply with 1990 Clean Air Act Phase 1 requirements by building scrubbers at its mine-mouth Harrison plant for $726.6 million, including allowance for funds used during construction. West Penn's share is $311.1 million. The company recently filed for higher rates designed to produce $92.8 million in annual revenues based on a 12.9 percent return on equity. Of this amount, $38.4 million is related to the recovery of construction work in progress for Clean Air Act expenditures.
 -0- 9/10/92
 /CONTACT: Josephine Zeppieri, CFA of Fitch, 212-908-0575/ CO: West Penn Power Co. ST: Pennsylvania IN: UTI SU: RTG


TS -- NY038 -- 7955 09/10/92 11:07 EDT
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Date:Sep 10, 1992
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