Chrysler wants $2.5M security deposit back from Indiana electric utility
The Detroit News reports that Chrysler has filed a complaint with the Indiana Utility Regulatory Commission seeking the return of a $2.5 million security deposit charged to the automaker’s Kokomo, Indiana facilities by Duke Energy, plus interest. The called Duke’s actions “unreasonable and discriminatory”
In 2009, after Chrysler’s bankruptcy and corporate overhaul, Duke requested a security deposit because it viewed the freshly-minted Chrysler Group LLC, allied with Fiat, as an entirely new customer.
Chrysler says it had already set up a prepayment system that “mitigated any risk to Duke” and negated the need for any security deposit, but it caved and paid the sum when Duke threatened to cut off power to the four Kokomo facilities.
According to the report, Chrysler has asked for the deposit back, but Duke Energy says it won’t return the money until Chrysler makes 12 consecutive payments, maintains a long-term credit rating of “BB” through Standard & Poors, and Duke determines Chrysler’s financial status and acceptability of risk.
Chrysler argues that Duke has not established any criteria for that final element, and both parties will meet in Indianapolis on August 15 to start hashing out the situation.
Chrysler wants $2.5M security deposit back from Indiana electric utility originally appeared on Autoblog on Sat, 28 Jul 2012 14:17:00 EST. Please see our terms for use of feeds.