IBJNews

Chrysler drives off with $2.5M refund from Duke Energy

Back to TopCommentsE-mailPrintBookmark and Share

Chrysler Group LLC has proved it’s of sufficient financial caliber to be a Duke Energy Indiana customer, saying the utility has finally refunded a $2.5 million security deposit that was used to ensure electric service at its Kokomo transmission plant following the automaker’s 2009 bankruptcy.

Chrysler filed a complaint with the Indiana Utility Regulatory Commission on July 5, saying Duke Energy “is the only public utility in North America still holding a security deposit from Chrysler.”

The automaker complained Duke resisted returning the $2.5 million deposit even after its finances improved, including 32 months of a “clean payment history.” Chrysler attorney Todd Richardson, of Indianapolis law firm Lewis & Kappes, argued that Duke was taking a “draconian” approach in its deposit rules.

He also noted that Chrysler added nearly 1,000 jobs at Kokomo since the 2009 bankruptcy filing. The plant employs about 3,500.

In a filing with the commission late last month, Chrysler said that Duke had refunded the seven-figure deposit, plus an undisclosed amount of interest, “upon review of Chrysler’s most recently published financial reports and further discussions with Chrysler."

The automaker posted a second-quarter profit of $346 million versus a loss of $370 million in the same quarter last year, when it paid off $551 million in federal loans.

“Chrysler reported its second-quarter results after its IURC filing was made, and the company has demonstrated a strong financial trend. Based on its performance, we agreed to fully refund the company’s security deposit,” said Duke spokeswoman Angeline Protogere.

Chrysler filed Chapter 11 bankruptcy reorganization in April 2009 and agreed to sell most of its assets, including its Kokomo transmission manufacturing factories, to a new entity partly owned by Italy’s Fiat SpA. As a result, according to Chrysler's complaint, Duke said it would regard Chrysler as a new customer and demanded a security deposit.

Duke had responded that it was simply using a deposit policy designed to minimize overall costs to all its customers.

“Duke Energy retains its right to request and obtain future customer deposits from Chrysler should they become warranted, and Chrysler retains its right to contest any future requests for customer deposits,” according to Chrysler’s recent filing withdrawing the complaint.

“Chrysler Group is pleased this matter has been resolved. Our company is achieving great success with our new products and Chrysler Group’s plan to invest more than a billion dollars in its Kokomo operations is strong indication of our financial performance and commitment to economic development in the state of Indiana,” said Chrysler spokesman Michael Palese.

Chrysler said it has $12.1 billion of cash on hand.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. Of what value is selling alcoholic beverages to State Fair patrons when there are many families with children attending. Is this the message we want to give children attending and participating in the Fair, another venue with alooholic consumption onsite. Is this to promote beer and wine production in the state which are great for the breweries and wineries, but where does this end up 10-15 years from now, lots more drinkers for the alcoholic contents. If these drinks are so important, why not remove the alcohol content and the flavor and drink itself similar to soft drinks would be the novelty, not the alcoholic content and its affects on the drinker. There is no social or material benefit from drinking alcoholic beverages, mostly people want to get slightly or highly drunk.

  2. I did;nt know anyone in Indiana could count- WHY did they NOT SAY just HOW this would be enforced? Because it WON;T! NOW- with that said- BIG BROTHER is ALIVE in this Article-why take any comment if it won't appease YOU PEOPLE- that's NOT American- with EVERYTHING you indicated is NOT said-I can see WHY it say's o Comments- YOU are COMMIES- BIG BROTHER and most likely- voted for Obama!

  3. In Europe there are schools for hairdressing but you don't get a license afterwards but you are required to assist in turkey and Italy its 7 years in japan it's 10 years England 2 so these people who assist know how to do hair their not just anybody and if your an owner and you hire someone with no experience then ur an idiot I've known stylist from different countries with no license but they are professional clean and safe they have no license but they have experience a license doesn't mean anything look at all the bad hairdressers in the world that have fried peoples hair okay but they have a license doesn't make them a professional at their job I think they should get rid of it because stateboard robs stylist and owners and they fine you for the dumbest f***ing things oh ur license isn't displayed 100$ oh ur wearing open toe shoes fine, oh there's ONE HAIR IN UR BRUSH that's a fine it's like really? So I think they need to go or ease up on their regulations because their too strict

  4. Exciting times in Carmel.

  5. Twenty years ago when we moved to Indy I was a stay at home mom and knew not very many people.WIBC was my family and friends for the most part. It was informative, civil, and humerous with Dave the KING. Terri, Jeff, Stever, Big Joe, Matt, Pat and Crumie. I loved them all, and they seemed to love each other. I didn't mind Greg Garrison, but I was not a Rush fan. NOW I can't stand Chicks and all their giggly opinions. Tony Katz is to abrasive that early in the morning(or really any time). I will tune in on Saturday morning for the usual fun and priceless information from Pat and Crumie, mornings it will be 90.1

ADVERTISEMENT