Tri-County Electric Cooperative has joined with 11 other electric distribution cooperatives serving Minnesota to form Southern Minnesota Energy Cooperative (SMEC) as the single point of contact for the purchase of electric service territory in southern Minnesota from Alliant Energy.
SMEC announced Tuesday that it has reached a definitive agreement to acquire territory from Alliant Energy. The transaction is contingent upon regulatory approval. Assuming the acquisition is approved by regulators, it is expected to close in 2014.
Brian Krambeer, president and CEO of Tri-County, says the acquisition will give SMEC's 12 member cooperatives new economies of scale to spread their fixed costs over more member-owners.
Krambeer says the acquisition is the single biggest positive action they can take to keep costs down.
For Tri-County the combined territory would serve about 13,000 members. The acquisition will add approximately 43,000 electric accounts to the systems of all of the 12 SMEC member cooperatives combined.