Alliant Energy’s Iowa utility has successfully closed the sale transaction of its Minnesota electric distribution assets to the 12 member cooperatives of Southern Minnesota Energy Cooperative (SMEC).
Effective July 31, SMEC member cooperatives are handling all aspects of electric service to 43,000 former Alliant Energy customers who have become member-owners of their local cooperatives as a result of the sale.
Affected customers have received a transition guide from Alliant Energy and a postcard stating the effective sale date and their new cooperative’s name and phone number. Customers have also received a welcome letter from their local cooperative.
The 12 member cooperatives are:
|BENCO Electric Cooperative||benco.org||888-792-3626|
|Brown County Rural Electrical Association||browncountyrea.coop||800-658-2368|
|Federated Rural Electric||federatedrea.coop||800-321-3520|
|Freeborn-Mower Cooperative Services||fmcs.coop||800-734-6421|
|Minnesota Valley Electric Cooperative||mvec.net||952-492-2313|
|Nobles Cooperative Electric||noblesce.coop||800-776-0517|
|People’s Energy Cooperative||peoplesenergy.coop||800-214-2694|
|Redwood Electric Cooperative||redwoodelectric.com||888-251-5100|
|Sioux Valley Energy||siouxvalleyenergy.com||800-234-1960|
|South Central Electric Association||southcentralelectric.com||507-375-3164|
|Steele-Waseca Cooperative Electric||swce.coop||800-526-3514|
|Tri-County Electric Cooperative||tec.coop||800-432-228|
Alliant Energy’s retail service area includes portions of Iowa and Wisconsin. In Minnesota, Alliant Energy will continue to operate its electric generation facilities and will sell electricity to SMEC per the 10-year purchased power agreement exercised as part of the sale.
Alliant Energy sold its gas distribution assets to Minnesota Energy Resources Corporation in April 2015.
Aggregate proceeds from the sales of the electric and gas distribution assets are approximately $145 million, including working capital adjustments and a $2 million promissory note.
The impact of the sale of the Minnesota electric and gas distribution assets was recorded in the second quarter of 2015. The premium received over the book value of the property, plant and equipment sold was more than offset by the tax-related regulatory assets associated with the Minnesota distribution assets resulting in a ($0.06) per share net charge in the quarter.