Paducah Power doesn’t qualify for bankruptcy
Paducah Power System has fewer options now in its efforts to improve its financial situation. Interim General Manager Mark Crisson says the utility does not qualify to file for Chapter 9 bankruptcy.
Crisson says it’s because PPS is not insolvent, which means that it is in a position to pay its debts.
He says filing for bankruptcy is always the worst option, until it’s the last option, and it could have led to higher power rates.
“I would be concerned that a judge or a receiver who was appointed to address the problem would look at the situation and raise rates and we’d lose control of the situation. This wouldn’t be a decision by our board or by somebody that’s appointed or elected by the citizens of Paducah. It would be somebody appointed by the court,” said Interim General Manager, Mark Crisson.
So what’s next for Paducah Power and its customers?
The utility’s options now include getting Prairie State Energy Campus, the power supplier, to produce more energy, refunding old bonds and/or marketing its assets.
The PPS board will meet on December 8, where board members will consider a resolution taking bankruptcy off the table as an option.