SME Seeking Court Order To Continue Power Service

Attorneys for Southern Montana Electric have asked a judge to prohibit its power suppliers from changing or stopping service while the Billings-based wholesale electric supplier reorganizes under Chapter 11 bankruptcy.

In court filings Thursday, SME argued utility services are essential to its operations and to a successful reorganization. SME says any interruption to its members would "kill any reorganization plan" before it could be considered.

The cooperative is asking Bankruptcy Judge Ralph Kirscher for an emergency hearing on the matter.

SME, which filed for bankruptcy reorganization Oct. 21, lists nearly $132 million in liabilities and $110 million in assets. It is composed of five central and southeastern rural cooperatives and the city of Great Falls. The umbrella co-op buys electricity from other suppliers and sells mostly to its members.

Associated Press