Friday, March 1, 2013

Questions emerging over Big Rivers's ability to survive

Doubts concerning the future viability of Big Rivers Electric Corp. were a topic of discussion before state regulators on Thursday. Big Rivers’ two biggest customers — the Century Aluminum and Rio Tinto Alcan aluminum smelters, which together account for 65 to 70 percent of its sales — have each served notice that they will terminate their power contracts. Big Rivers’ own auditor, KPMG, is actively evaluating whether there is “substantial doubt” of the company’s “ability to continue as a going concern for a reasonable period of time,” according to a memo from the auditing firm to Big Rivers’ chief financial officer.

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