Eastern KY town uses grant money to pay power bill

BENHAM, Ky. (AP) - An eastern Kentucky town has used a $100,000 grant to settle an unpaid bill with Kentucky Utilities, a debt that prompted the power company to sue the city.

Benham Mayor John Dodd told the city council on Thursday that the money came from the Richard and Leslie Gilliam Foundation, with the stipulation that it be used to retire debt.

Kentucky Utilities has sued the Benham Power Board for breach of contract. Last month, city officials nixed a proposal to turn over the electric distribution system to Kentucky Utilities.

City officials say they have hopes that KU will agree to drop the lawsuit, since the debt has been paid, the Harlan Daily Enterprise reported (http://bit.ly/nJL75m).

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