COLDWATER, MI (WTVB) – The Coldwater B.P.U. Board approved the withdrawal agreement between the Village of Union City from the Michigan South Central Power Agency on Wednesday night and sent it on to the City Council for their action.
The agreement calls for Coldwater and Marshall to purchase Union City’s transmission rights, while Hillsdale and Clinton consent to the agreement. In exchange for Union City’s transmission rights, which will allow the Village to leave the membership of the M.S.C.P.A., Coldwater and Marshall will be buying 4.86MW of transmission for $500,000.
Monthly payments will be made for eight years with no interest. Coldwater’s monthly payment will be just over $3,200.
In addition to the sale of the transmission, Coldwater and Marshall have also agreed to pick up Union City’s allocated pension and administration costs.
It is expected the Union City withdrawal will be completed next May.
The M.S.C.P.A. Board approved the agreement on October 15. All of its members are taking the agreement to their respective Boards and Councils for final approval.
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