Paducah City Commissioners asked Mayor Gayle Kaler to request a brief from Paducah Power System on the Rate Recovery Plan at last night’s city commission meeting.
Commissioner Richard Abraham says the City Commission wants more details about a PPS meeting with insurance and bond rating companies this week.
“With the trip that’s coming up, going to New York, to meet with insurance entities, if the bond rates are not where it needs to be could affect their rate reduction plan that they’re moving forward,” Abraham said.
PPS board member and city manager Jeff Pederson told the commission the trip to New York is important to promote the Rate Recovery Plan to companies that will play a role in the plan’s success.
“A lot of that is the confidence on the part of the financial market that Paducah Power had a plan in place that was sound so that we would be attractive to them to continue to invest in.”
The city passed a resolution to move with transparency in September. The power plant board voted Monday not to file bankruptcy on the recommendation of Hilliard-Lyons financial advisors and a bankruptcy law firm.
PPS is battling high debt and a low performing coal fired power plant which has resulted in high residential power bills.