BILLINGS – The former general manager of a bankrupt Montana electric co-op says unfavorable contracts, missed payments and lost customers are to blame for its financial problems — not a new $85 million power plant.
Attorneys for creditors of Southern Montana Electric Generation and Transmission Cooperative questioned general manager Tim Gregori under oath Friday for five hours.
They are seeking to determine what led Southern to sink $21 million into debt prior to its October bankruptcy filing.
Great Falls City Attorney Jim Santoro says Gregori is trying to deflect blame and knew customer contracts were expiring. The city is a member of Southern.
Another attorney, John Crist of Billings, says the co-op’s problems stem from a new plant that produces power at a greater cost than it sells for on the market.