Tuesday, February 17, 2015
Duck River EMC Presents Merger Offer For The Mount Pleasant Power System
Press release
Duck River Electric Membership Corporation (DREMC) this morning presented a merger proposal to the Mount Pleasant Power System Board that includes an offer of $12.275 million for utility assets and a commitment for $2.5 million in electric system improvements.
If approved, the merger would reduce electric rates approximately five percent for Mount Pleasant residents. They also would become electric cooperative member-owners, joining 72,000 households, businesses and industries that receive power and services from DREMC in all or parts of 16 counties across Middle Tennessee.
The proposal is based on a feasibility study that took more than six months to complete. GDS, a consulting firm experienced in the valuation of utilities and study of the economic impact of mergers, produced a detailed report that showed the two utilities could be integrated without a rate impact for current DREMC members. MPPS customers would see a rate decrease.
MPPS is the electricity provider for 3,700 customers in Mount Pleasant and adjoining parts of Maury County.
Key points of the merger proposal are:
DREMC would retain all Mount Pleasant Power System (MPPS) employees.
The existing MPPS office would be used to serve the city and surrounding rural areas. Current co-op members would transact their utility business there, in addition to local residents.
Mount Pleasant would become the hub of an expanded DREMC operational district, with dedicated crews and equipment.
The $2.4-million upgrade would improve system integrity and future reliability.
MPPS customers will become co-op members, eligible for all programs and services offered by DREMC. This includes PowerUP prepay and other bill payment options; DREMC’s mobile app; Beat the Peak ™ residential demand response; eScore energy efficiency rebates and loans; the DREMC community solar farm; Project Help and Weatherization Wizards; Washington Youth Tour; scholarship programs; community economic development support; and The Tennessee Magazine.
As co-op members, Mount Pleasant residents could participate in the DREMC district election process for the Board of Directors.
Because electric cooperatives like DREMC are non-profit and self-regulating, they are governed by boards elected by the membership. Pending acceptance of the merger proposal, the DREMC Board of Directors would review district boundaries and decide on future representation within the director zones for the 3,700 new members from the Mount Pleasant area.
“In addition to the amount and terms of the offer, Duck River wants to ensure Mount Pleasant residents that they will become part of a growing and very stable electric system dedicated to providing affordable, reliable electricity and committed to the communities we serve ,” said DREMC President and CEO Michael Watson.
The co-op maintains district offices and service centers in Columbia, Chapel Hill, Lewisburg, Shelbyville, Lynchburg, Manchester, Decherd and Sewanee. The headquarters office is in Shelbyville.
American Customer Satisfaction Index (ACSI) surveys conducted by Touchstone Energy consistently rank DREMC high in outage response and other areas important to those who rely on consistent power delivery. DREMC's benchmark scores also are in the upper quartile of similarly-sized electric co-ops across the nation.
"We place our greatest priority on member care, whether through system reliability and energy programs or community service," said Watson. "Our mission statement emphasizes the fact that we are committed to delivering electricity to enhance the quality of life of those we serve."
