Analyst: Utility proposal could derail PNM's purchase of KGE.

Public Service of New Mexico has little to say so far about a proposal for the city of Wichita to start its own municipal electric utility, but at least one analyst says a city-owned utility could derail PNM's planned acquisition of KGE and ultimately kill KGE as a company.

"This puts us in an interesting position," says Crystal McClernon, director of public affairs for PNM.

PNM still expects to close the deal in Kansas in the first half of next year, McClernon says. Wichita Mayor Bob Knight's announcement has not seemed to affect PNM's stock price, which was selling for $24.75 midweek.

How to put KGE back together?

Bob Egbert, director of Wichita State University's Center for Energy …