Two Western utilities have submitted proposals to reorganize bankrupt Colorado-Ute Electric Association Inc.
The proposals came Tuesday on the same day as a deadline for reorganization plans set by Victor Palmieri, bankruptcy trustee for Colorado-Ute, which sought Chapter 11 federal bankruptcy protection from creditors last March.PacifiCorp, a Portland-based company with utility operations in seven other states, proposed a deal in which it would play a major role in the reorganization of Colorado-Ute, based in Montrose, Colo.
Under the plan, PacifiCorp's Electric Operations unit would acquire 400 megawatts of Colorado-Ute's generating assets from four coal-fired power plants for $385 million.
In turn, PacifiCorp would sell power to the utility that would serve Colorado-Ute's existing customers and use the balance of the generation for PacifiCorp customers.
Colorado-Ute's 14 rural cooperatives provide service to approximately 200,000 customers.