Paducah Power Board heads to New York City
Several Paducah Power Board members are heading to New York City Tuesday to try to lower your bill cost. Board members are hoping to reassure credit rating and bond agencies that their company is stable.
The board agreed to dismiss the option of bankruptcy now and in the future. Bankruptcy would have removed Paducah Power’s debt, but they said they’re ineligible because they’re able to pay all their debts and bills.
Paducah Power Interim General Manager Mark Crisson said even having the option could hurt the utility company in the long run.
“As long as it appears that we are seriously considering it as an option, it would be very hard in good faith to present that we are a good credit risk,” Crisson said. So, they’re heading to New York City to prove it to credit rating and bond agencies.
“We want to try to get that rating reaffirmed and strengthened,” Crisson said. Paducah Power Spokeswoman Andrea Underwood said power rates will be frozen until July, to make up the costs she said they’re hoping to get a surety bond from one of the bond agencies. This would replace their debt service reserve.
Crisson said they have to demonstrate strong credit to get a competitive surety bond bid.
“We talking about tens of millions of dollars that can be accessed and freed up to help us reduce expenses,” Crisson said. Underwood said getting a surety bond is just one part of their recovery rate plan. She said they are also switching portfolio at the start of the year to help better market their assets.
They’ve also started their home check-up program. It’s where a Paducah Power employee goes to your home to look for ways to make it more energy efficient for free. At the meeting they said they’ve been to at least 28 homes. Tuesday the board approved a home energy audit program, which brings in an outside expert to help make more energy efficient changes to your home.
If you’re interested in either of these programs, contact Paducah Power at (270) 575-4000.