(MURFREESBORO) On Thursday (1/9/2020) night Murfreesboro City Council approved the sale of Murfreesboro Electric to Middle Tennessee Electric for approximately $302-million over 15 years. Friday (1/10/2020) MTEMC's board approved. It now goes to TVA for their 'thumbs up'.
Under the agreement, Middle Tennessee Electric will pay $43-million up front, and then $17.3-million over 15-years at 3.3 per cent interest.
Then Finance Director and City Recorder Melissa Wright called for the vote on whether or not to sell the utility . . .
City Councilmember Bill Shacklett concluded . . .
City Manager Craig Tindall commented, "This is all about opportunity for two very strong Murfreesboro-based electric providers to join forces and become even better as one. This merger will benefit the citizens of Murfreesboro by providing the revenue for much needed infrastructure construction and improvements."
Murfreesboro Mayor Shane McFarland added. "As I have stated publicly, the reason I feel comfortable about the decision is to the credit of Chris Jones, president and CEO of MTEMC. He has been honorable, ethical and straight-forward about the merger. Our goal is to make sure we put the residents of Murfreesboro first and these discussions are critical for the success of our city."
MED General Manager P.D. Mynatt said, "Utilities are built on the benefits of economy of scale. So, this merger benefits the ratepayers by enhancing efficiency and allowing for future system improvements."
What Lies Ahead?
MTEMC President/CEO Chris Jones underlined, "Electric rates will not be negatively impacted by the merger. Middle Tennessee Electric has the capacity to address the future of electric distribution. We are dedicated to investing in the technology that is needed to deliver cost-efficient and reliable energy to Middle Tennessee Electric's customers in the future."
Again, by a vote of 6 to 1, the Murfreesboro City Council sold Murfreesboro Electric Department to Middle Tennessee Electric. The sale was approved the Friday (1/10/2020) by the MTEMC board of directors and now TVA is the only remaining agency that needs to give a "thumbs up".