COLDWATER, MI (WTVB) – It was initially thought the Village of Union City would be out of the Michigan South Central Power Agency by now but that is not the case.
The original deadline was last Wednesday and while a tentative withdrawal agreement is still being worked out, snags have developed with various contracts.
One agency Union City is dealing with is the Midcontinent Independent System Operator which delivers electric power across the country. The village was not ready to submit a model update to MISO by June 15. They now have to wait until September 15 for an effective date of December 1.
It was also mentioned during last Thursday’s M.S.C.P.A. Board of Directors meeting by Tom Sillasen of American Municipal Power that an issue involving the allocation of prior year energy averages has come up.
Discussion during the meeting seemed to indicate it maybe another year before Union City is officially out of the agency.
Coldwater and Marshall have tentatively agreed to buy out the shares of Union City’s assets and liabilities in the agency.
A tentative agreement calls for Union City to be paid $500,000 over eight years with no interest. In exchange, Coldwater and Marshall will receive their allocation in transmission entitlement rights and agree to pay Union City’s portion of liabilities and expenses.
Upon completion of this transaction, Union City will be completely divested of their participation in both the MSCPA and American Municipal Power.
This withdrawing mess is all Paul Beckhusen’s fault.