PacifiCorp, Utah Power & Light Co.'s parent company, has agreed with two other utilities to take over operations of the bankrupt Colorado-Ute Electric Association.
Also participating in the buy-out plan are Public Service Co. of Colorado and Tri-State Generation & Transmission Association.The three companies, at the urging of the trustee overseeing the Colorado-Ute proceedings, have withdrawn competing reorganization plans and filed a consensual plan outlining how Colorado-Ute will be divided.
In a joint press release, the companies said the venture "will expedite resolution of Colorado-Ute's financial problems and assure the 200,000 customers of the 14 member cooperatives . . . a stable and reliable source of power at reasonable prices."
The plan would lower Colorado-Ute rates by about 5 percent.
If approved, PacifiCorp will spend $240 million for the assets it acquires (248 megawatts of generating power) with the money going to pay off Colorado-Ute's secured debts. Public Service will pay about $230 million towards the secured debt.
Tri-State and Public Service will assume responsibility to pay off unsecured creditors.
The companies said the agreement will cover all of Colorado-Ute's existing debt.