EUP Electric Co-op Members Vote To Buy Edison Sault Power Company
Residents in Chippewa, Luce, and Mackinac counties will soon all have the same electric utility provider. Members of the Cloverland Electric Cooperative voted overwhelmingly to approve its acquisition of Edison Sault Electric during a special meeting at Dafter Township Hall Thursday, November 12. If the purchase is finalized, the electric co-op will serve about 42,000 electric accounts in five U.P. counties, including portions of Schoolcraft and Delta counties.
Co-op members voted 293.5 to 11.5 to approve the purchase of the Sault Ste. Marie power company, including its hydroelectric power plant on the St. Marys River, from Wisconsin Energy Corporation. Each household and business account had one vote and a husband and wife could split their household vote, each getting one half. The electric co-op provided transportation to the meeting for its customers from its district offices in Newberry and DeTour.
The purchase is subject to regulatory approval from the Michigan Public Service Commission, Federal Energy Regulatory Commission, and U.S. Department of Agricultural Rural Utilities Service. Cloverland officials expect the purchase to be finalized by mid 2010. The two electricity providers will continue to serve their respective customers until the acquisition is approved by all regulatory committees.
"The board and I pursued this acquisition because we know it is the single best way for the people of our region to ensure local control of our energy supply, promote longterm rate stability, and improve service through increased efficiency," said Cloverland General Manager Dan Dasho in a statement. "Democratic member control is what co-ops are all about, and I am delighted that we are one step closer to bringing all the benefits of cooperative membership to the customers of Edison Sault Electric."
Cloverland does not expect electricity rates to increase beyond normal inflation or state and federal mandates as a result of the acquisition.
Mr. Dasho said the co-op will conduct a cost-of-service study to bring Edison Sault customers' class ratings in line with that of the cooperative. Customers currently powered by Edison Sault are likely to pay a different rate than current Cloverland customers until the study is complete. When completed, the Michigan Public Service Commission will determine if any rate increases or decreases are necessary to all customers. Mr. Dasho said it could take up to three years for all account class ratings to be aligned.
"There could be two rates for a time," he told The St. Ignace News Friday, November 13. "It's unlikely that they would change all at once."
If the sale is approved, the two utilities' workforces will be combined, employing more than 100 workers across the EUP. Cloverland officials said the biggest changes Edison Sault customers will see are the logos on its trucks, the telephone number to be called for assistance, and the address where payments are mailed.
Cloverland, established in 1938, is governed by a board of nine member-directors elected by its membership. The board is responsible for setting co-op policies, hiring a general manager, and hiring additional staff.
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