Pilsen power plant owner may file for bankruptcy
08/01/2012 3:27 PM
As Pilsen and Little Village wonder whatíll happen to the Fisk and Crawford coal-fired power plants after they shut down this fall, a new wrinkle has emerged that could affect what the company that owns them decides to do with the sites.
According to the Chicago Tribune, the plantsí owner, Midwest Generation, probably wonít have the cash flow necessary to pay back $500 million in debt thatís due next June and could seek bankruptcy.
The paper said Midwest Generation is struggling to pay for environmental upgrades required at its aging power plants, and low power prices arenít helping matters, according to its parent company, Edison International.
Edison International is looking to restructure $3.7 million in unsecured debt to avoid filing for bankruptcy reorganization, the Tribune reported.
Midwest Generation is part of a holding group within Edison International known as Edison Mission Energy, and Edison Mission as a whole isnít performing well. If Edison Mission enters bankruptcy, it could split from Edison International, the Tribune reported.
While an ownership change would not affect Midwest Generationís legally binding agreement with the city to shut down Fisk and Crawford, it could affect the future of the sites. The shutdown agreement didnít say what would come next for the former power plants; that decision is up to Midwest Generation.