Paducah Power System has taken the first step in its Rate Recovery Plan with the acquisition of surety bonds.
The bonds act like an insurance policy and free up the utilities reserve funds to help PPS pay down some of its high debt levels related to their part ownership of Prairie State Energy Campus in Illinois and its Peaking Power Plant.
PPS Director of Finance Dave Carroll says those bonds also help protect shareholders from any further losses.
“And then those funds would be used to make principal payments on debt, which lowers our cost of power," Carroll said.
"Our plan right now is to lower the power cost adjustment beginning July 1st.”
PPS expects to close the deal by mid-February. From there, Carroll says the utility’s next step is to keep rates steady while continuing to whittle down its debt.
The utility's customers currently pay some of the highest electric rates in the state.