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Paducah Power System Will Not File Bankruptcy

Lance Dennee

The Paducah Power System board voted not to file Chapter Nine bankruptcy during their meeting today in Paducah.

The Rate Reduction Plan adopted last month will help PPS to reduce millions of dollars in costs while looking to reduce the rates mid-2015 through bond insurance, general manager Mark Crisson said.

“But, basically what it does in propose to access something called a Debt Services Reserve,” he said. “That reserve can be replaced by an insurance policy for a fee and it would free up several million dollars over the next three years.”

“It’s your board's decision and mine too that bankruptcy is not the way we want to go,” board chair Hardy Roberts said.

Board members will go to New York this week to meet with bond and insurance companies to reassure they that they do not intended to file bankruptcy in an effort to get better bond and insurance rates in order to lower their debt.

“It’s important we tell our story first hand,” Crisson said. “What we hope to accomplish is get competitive bids or proposals from one or more of the bond insurance companies.” “And, to reaffirm or maintain our current bond rating so we’re positioned to refinance all or a portion of our debt going forward,” he added.

PPS is battling high debt and a low performing coal fired power plantwhich is promoting high residential power bills.

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