MOODY'S MAY DOWNGRADE DUQUESNE LIGHT <DQU> DEBT
Moody's Investors Service Inc said it
may downgrade Duquesne Light Co's two billion dlrs of debt.
    Moody's said it would assess the likely financial
consequences of the 19 mln dlr rate reduction ordered today by
the Pennsylvania Public Utility Commission.
    The unexpected order raises significant doubts about the
quality of Duquesne's regulatory support and financial
prospects. The Commission's determination that Perry Unit 1's
power is not needed could depress Duquesne's earnings and cash
flow well into the future. Duqusne has Baa-1 senior debt and
preferred stock and Baa-2 debentures and preference stock.
 Reuter
