S&P: Duquesne Light unchanged

Standard & Poor's said that Duquesne Light Holdings Inc.'s (BBB/negative) announcement that federal tax credits are still available to the synthetic fuel facilities that it once owned and still operates is favorable for the company's credit quality but does not affect the ratings.

The facilities qualify for the tax credits because the IRS has determined that the plants were operational by the appropriate date, S&P said.

The agency noted this outcome eliminates Duquesne's risk of losing the tax credits that it earned when it owned the facilities as well as the income from operating the plants that is expected to continue into 2008, when the federal tax credit program expires and the synthetic fuel operations cease.

However, the risk of losing income from operating the facilities continues to exist for Duquesne because the plants could still undergo a slowdown or shutdown if the tax credits begin to be partially or completely phased out as a result of high oil prices, S&P added.

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