Is merger right for Carroll County REMC?

2008-06-18 / Opinions & Letters

Carroll County REMC customers will be asked to weigh in on the proposed merger with White County at the annual meeting June 21. The board of directors for the two cooperatives voted in November to proceed with a plan to merge. They believe that this will be good for both counties.

However in the end, it will be the members of both cooperatives who will decide at the upcoming annual meetings just how their respective county should proceed in the potential transaction. Members in each county must cast a majority vote for the merger to go forward.

Carroll County REMC customers are urged to review and compare as much financial information as possible about the two cooperatives before casting a long-lasting and financially-binding vote.

Financial information was provided by the board of directors at several meetings in the past few months that would indicate Carroll County REMC is in sounder financial condition than White County REMC. That information can be obtained by contacting your director or the main office in Delphi.

In reviewing the information, Carroll County is approximately $5.5 million in debt and has nearly 6,800 meters, which means each meter carries roughly $800 in debt in Carroll County. White County REMC is nearly $12.5 million in debt and has approximately 7,900 meters, which gives each meter a debt of nearly $1,580.

It stands to reason that when the debt is consolidated, each meter will carry approximately $1,220 in debt, which means Carroll County residents will assume more debt.

In addition, Carroll County customers pay $20/month for a meter and White County customers pay $25. Carroll County REMC workers are unionized while White County workers are not.

It is not known how those details will be resolved. Although the current boards voted to proceed with the merger, details about critical decisions concerning rates and facility charges and other related issues will be made by the new cooperative, called the Tioga Rural Electric Cooperative.

It is essential for customers to do their homework before allowing the merger to proceed. The informed voter should have the answer to these and other questions to protect their investment.

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