WISCONSIN ELECTRIC POWER COMPANY $100 MILLION FIRST MORTGAGE BONDS RATED 'AA+' $30 MILLION FIRST MORTGAGE BONDS RATED 'AA+'
CHICAGO, March 3 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has assigned a rating of AA+' (Double-A-Plus) to Wisconsin Electric Power Company's proposed issuances of $100 million 10-year non-callable first mortgage bonds due 2016, and $30 million non-callable first mortgage bonds due 1996. Proceeds will be used to refund higher cost debt. Wisconsin Electric Power has a conservative capital structure, good earnings quality, and an excellent record in operations and cost control. The company has been able to lower its average cost of debt by 100 basis points over the past year by refinancing higher cost debt. Wisconsin Electric Power is in a good position as it confronts an acceleration in its construction program. The company is adding peaking capacity to meet increased demand growth. Internally generated funds are expected to provide the majority of construction requirements through 1996; however, some new money financings are likely. A continuation of relatively supportive regulation will be necessary to prevent erosion in fundamentals. In February 1993, the Wisconsin Public Service Commission (WPSC) authorized Wisconsin Electric Power a $26.7 million (2.3 percent) electric rate increase. The company had requested $69.6 million (5.9 percent) based upon a 13.5 percent ROE. The WPSC order is based on a 12.3 percent ROE. Approximately one-half of the revenue requirement difference between the company's request and the WPSC's authorized rate increase is attributable to the lower ROE. Wisconsin Electric Power Company, the principal subsidiary of Wisconsin Energy Corporation, is the largest electric utility in Wisconsin. It serves approximately 900,000 customers in a 12,600 square mile area, including southeastern, east central, and northern Wisconsin as well as the Upper Peninsula of Michigan. -0- 3/3/93 /CONTACT: William A. Abrams, CFA of Duff & Phelps Credit Rating Co., 312-368-3112/ (WEC)
CO: Wisconsin Electric Power Company ST: Wisconsin IN: UTI SU: RTG
PS -- NY048 -- 2456 03/03/93 12:18 EST
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|Date:||Mar 3, 1993|
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