Some South Dakota towns may buy parts of bankrupt utility

Washington (Platts)--12Jan2004

Several South Dakota municipalities, concerned about the financial condition of the bankrupt Sioux Falls-based NorthWestern utility, are openly contemplating the possibility of entering the utility business, a spokeswoman for the South Dakota Municipal League said Monday. The municipalities "are very concerned about potential rate increases, the level of service and utility stability," Yvonne Taylor, executive director of the South Dakota Municipal League told Natural Gas Alert. NorthWestern, which serves nearly 600,000 gas and electric customers in Montana, South Dakota and Nebraska, filed for protection from creditors under Chapter 11 of the US Bankruptcy Code in September 2003. Member municipalities have been discussing their options since October, but are uncertain what they can do, she pointed out. So far, none of the communities have hired any attorneys or consultants to study the legalities or feasibility of buying parts of NorthWestern.