State regulators are investigating the Hyde Park Electric Department’s finances, after the small electric utility reported that it has been relying on loans to cover its revenue shortfalls.

The Public Utility Commission, which regulates Vermont’s electric utilities, says it wants to find out how Hyde Park ended up in such dire financial shape, and says the investigation will determine if Hyde Park Electric broke the law when it used money from loans taken out by the Village of Hyde Park to cover its liabilities.

“The department could not be more concerned,” said Department of Public Service Commissioner Kerrick Johnson. “Essentially Hyde Park Electric is not solvent.”

Johnson said the Department of Public Service was tipped off that Hyde Park Electric was using money it was collecting f

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