Fortnightly
Cajun Files for Chapter 11
February 1, 1995By Lori A. Burkhart
Citing the "competing demands" of the Rural Utilities Service (RUS), formerly the Rural Electrification Administration, and the Louisiana Public Service Commission (PSC), Cajun Electric Power Co-op filed for Chapter 11 bankruptcy protection on December 21. Finding the utility's investment in the River Bend nuclear plant not used or useful, the PSC had ordered Cajun to reduce its wholesale power rates by $30.2 million annually. The utility, which owes the RUS nearly $4 billion, says the reduced rates will make repayment impossible. According to Daniel E. MacLeod, Cajun's executive vice president and general manager, much of the RUS debt stems from investment in the River Bend nuclear plant. MacLeod added that RUS had offered to substantially reduce Cajun's debt, but could not convince the PSC to approve a wholesale rate level sufficient to allow a payment satisfactory to RUS.
11
Articles found on this page are available to Internet subscribers only. For more information about obtaining a username and password, please call our Customer Service Department at 1-800-368-5001.
Public
Utilities Fortnightly & Spark
