Big Rivers says PFM report on HMP&L purchase based on assumptions, not facts

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HENDERSON, Ky (WEHT) Big Rivers says they have completed an analysis of the PFM report of HMP&L and will be presenting their findings at the Board of Commissioners meeting Tuesday. That PFM report was conducted to assess the value of HMP&L and the impact on the city if Big Rivers purchased HMP&L. The report showed Henderson customers would be negatively impacted, but Big Rivers says that’s untrue and not everything was taken into consideration. 

The city of Henderson did not vote on the latest offer from big rivers to purchase Henderson municipal power and light. Mayor Steve Austin ended the discussion between big rivers leaders and the city commission. Earlier this month, the commission voted to table a vote on the utility company’s purchase. Henderson Mayor Steve Austin said additional details from last week’s study were “questionable” and needed to be verified.

A consultant for Big Rivers presented data to the city commission today after doing his data-based analysis. He said Big Rivers found a $20 million error PFM made, that’s the company who made the initial analysis of the offer for the city.

Big Rivers leaders said if the city sells HMP&L to them, not only will the city get $90 million at closing, customer’s electric rates will be reduced by $3.6 million by 2035. This is a stark contrast compared to a $4.9 million increase included in the original report.

“PFM’s report for the city said it would be a negative $30.5 million to the customers. With those corrections, it is now 165 million dollar positive benefit to the customers and it’s a 25 million dollar benefit to the city,” Bob Berry, Big Rivers CEO, explained there will actually be a $25 million net gain for the city while saving customers money.

Tuesday’s meeting ended without a decision from the city commission.

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