Members of Midland Power Cooperative and Humboldt County REC overwhelmingly approved a plan to merge the two electric cooperatives. Ninety-three percent of Midland Power members who voted and 89 percent of Humboldt County REC members who voted approved the measure.
Both cooperatives held special meetings to close the balloting and count votes on March 22. Midland Power’s 93 percent approval represents 4,339 “yes” votes out of 4,623 ballots cast. Of the 861 Humboldt County REC members who voted, 769 or 89 percent approved the measure. For the merger to have passed, Iowa law stipulates that at least 50 percent of the membership of each cooperative must vote and two-thirds of those who voted from each cooperative must favor the proposal.
“This successful merger vote is the result of two years of hard work and dedication put forth by the directors and employees of both cooperatives. We are very excited about the opportunities this merger will have to offer,” says Steve Long, manager, Humboldt County REC.
The merger will be effective January 1, 2013, and the name of the REC will be Midland Power Cooperative. The headquarters will be in Jefferson, Iowa, and the office in Humboldt will remain open. The current Midland Power Cooperative general manager, Bill McKim, will manage the merged cooperative. This will coincide with the retirement of Humboldt County REC’s long-time manager, Steve Long.
Electric cooperative mergers are not new. Nearly 115 electric cooperatives across the country have consolidated or merged over the years. In Iowa, there have been about 26 consolidations or mergers, leaving 36 REC’s in the State.
Projections by Midland Power Cooperative and Humboldt County REC show that the merger will save approximately $5.5 million over 10 years. With the plan approved by the memberships, the staff and boards at both cooperatives will now forge ahead on details to combine the systems. There should be no interruption of service due to the merger, and the most noticeable change will likely be the new name of the office in Humboldt.
Midland Power Cooperative is a not-for-profit electric distribution cooperative that serves approximately 7,300 members in 13 counties in central Iowa from its headquarters in Jefferson, Iowa, and service centers near Boone and Iowa Falls.
Humboldt County REC is a not-for-profit electric distribution cooperative that serves approximately 1,500 members in 5 counties from its headquarters in Humboldt, Iowa.
For More Information Call: Abbey Sprague at Midland Power, 800-833-8876; or Jo Ann Neppl at Humboldt County REC, 800-994-3532