Alliant selling its electric distribution business in Minnesota to cooperatives
Originally published September 19, 2013
Alliant Energy Corp. has agreed to sell its electric distribution business in Minnesota to Southern Minnesota Energy Cooperative (SMEC), a group of 12 neighboring rural electric cooperatives. At the same time, the company agreed to sell its natural gas business in the state to Minnesota Energy Resources Corp., a subsidiary of Integrys Energy Group Inc. The combined sale price of the electric and natural gas assets is approximately $128 million, Alliant said. The sales require approvals by state and federal regulators, which are expected in six to 12 months, the utility said.
As part of the electric sales agreement, SMEC signed a 10-year contract to purchase power from Alliant Energy's Iowa electric utility, Interstate Power & Light. With the purchased power agreement, Alliant said its Minnesota electric customers "will continue to receive energy from a diverse portfolio of generation resources while future electric generation needs and plans for Alliant Energy's Iowa utility are unchanged." Alliant said it will continue to operate its electric generation facilities in Minnesota.
Alliant said it serves 43,000 electric customers and 10,600 natural gas customers spread over nearly 15,000 square miles in southern Minnesota. SMEC-member utilities currently serve nearly 135,000 electric customers, according to Alliant. The service territories of Alliant Energy and the 12 cooperatives overlap and the Alliant customers would be divided among the 12 cooperatives.
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