In the biggest acquisition ever by a power cooperative of a municipally owned utility, Middle Tennessee Electric Membership Coop will take over Murfreesboro’s municipal electric system to create one of the biggest distributors of power generated by the Tennessee Valley Authority.
TVA approved the proposed merger between the two Murfreesboro-based power utilities, which is expected to become effective in July. Under the agreement already approved by the boards for both utilities, Middle Tennessee Electric will pay $302 million over the next 15 years to the city of Murfreesboro to acquire the Murfreesboro Electric Department and its 67,000 customers.
“This represents the coming together of two excellent electric utilities that have coexisted very well in Murfreesboro for the past 80 years,” Chris Jones, MTE’s president and CEO, said in an announced of the merger Tuesday. “We’re confident the result will be an even stronger entity with increased effectiveness for strengthening our mission of providing safe, reliable and low-cost services to all customers.”
The combined utility will serve more than 300,000 customers and collect nearly $800 million a year in revenues.
Murfreesboro Mayor Shane McFarland, a proponent of the sale of the city-owned utility, said Middle Tennessee Electric can offer power at competitive rates and the city can reap extra funds for other municipal operations.