PRC and New Mexico Coop Face Off over Internet Spin Off
Posted on Aug 13, 2012 in Corporate Governance, Rates, Regulation & Policy, Technology | Comments Off on PRC and New Mexico Coop Face Off over Internet Spin Off
Kit Carson Electric Cooperative (Kit Carson) is pushing back against the New Mexico Public Regulation Commission (PRC) order to spin off the coop’s subsidiary Internet business. In September 2011, the PRC approved a rate increase for Kit Carson but ordered the coop to create a separate internet company within nine months based on potential liabilities associated with the its Internet and broadband services. Kit Carson is arguing that reorganizing its internet company would violate contractual obligations associated with a $64 million grant/loan from the federal government. The PRC will likely issue a procedural order in the next few weeks and a public hearing may be held next fall. Click here for more.
