Fitch rates Vepco notes A-

Fitch Ratings said it assigned an A- rating to Virginia Electric and Power Co.'s $700 million series B 8 7/8% senior unsecured notes due Nov. 15, 2038.

The outlook is stable.

Proceeds will be used to repay $120 million of 5.73% notes due Nov. 25, 2008 and for general corporate purposes, including the potential repayment of commercial paper debt, which totaled $398.5 million as of Oct. 31.

The rating is supported by stable cash flows from significant electric system assets and by the constructive 2007 Virginia energy legislation, the agency said.

Concerns include risks associated with completion of significant capacity addition and transmission capital spending plans on time and within budget and continuing recovery delays for fuel costs, the agency noted.

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