COLDWATER, MI (WTVB) – The Coldwater B.P.U. Board of Directors approved two agreements with Clemens Food Group on Wednesday night concerning to the electric service to Clemens.
B.P.U. Director Jeff Budd says the agreements spell out that Clemens will be paying the utility for several of the electrical improvements originally purchased by the CBPU, as well as certain ongoing maintenance and operations costs, in exchange for being billed as a transmission customer under the Time of Use rate.
Clemens will be paying just under $1.6 million immediately to the CBPU for items already purchased by the CBPU, plus up to an additional $973,000 for a new electrical line and a possible upgrade to the existing electrical line to their facility from the Jonesville substation.
Budd says Clemens will benefit from a lower Demand Charge on the TOU rate at the transmission level, but also will cover the CBPU’s initial investment and take on the financial burden for the cost to maintain the electrical lines to their facility and the substation.
Advantages to the CBPU include the utility may use the up-front proceeds to offset the cost of improvements at the Bennet Street substation that otherwise would have to be financed.
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