Public Service Co. of Colorado and PacifiCorp, parent company of Utah Power & Light, have submitted a joint reorganization plan for the bankrupt Colorado-Ute Electric Association, proposing reduced electricity rates to Colorado-Ute's members and full payments to all creditors.

The proposal was filed in U.S. Bankruptcy Court and generally blends the reorganization plans initially submitted separately by the two utilities in January. Under the terms of the joint proposal, Public Service Co. has offered to pay approximately $255 million for various Colorado-Ute assets, assume Craig 3 lease obligations with a renegotiated net present value of $312 million and lend up to $90 million to Colorado-Ute.The proposal would enable PSCo to acquire 606 megawatts of electric generating capacity, approximately 1,800 miles of transmission facilities and all other assets not acquired by PacifiCorp. PacifiCorp would acquire 365 megawatts of Colorado-Ute's generating capacity and its interest in the Trapper Coal Mine for $365 million.