The state Public Service Commission has ordered an investigation into finances at East Kentucky Power Cooperative in response to annual reports that show the energy provider has been in the red since the last quarter of 2004.
The service commission filed the order on Friday for documents and financial statements dating back to 2001 to determine whether the cooperative can fulfill its financial requirements with lenders.
"We remain in good standing with our lenders," said Kevin Osbourn, a spokesman for the cooperative. "All loan funds are fully available for East Kentucky Power's use, so we think that's a vote of confidence in the future."
Osbourn said the cooperative's lenders are also aware of the reasons for negative net margins. Lenders include the Rural Utilities Service, the Federal Financing Bank and Cooperative Finance Cooperation, according to the commission order.