Oglethorpe Power Corp. recently completed an extensive restructuring that transformed the generation and transmission power cooperative into three specialized companies better able to compete in a restructured electric market.
In addition, the company's board of directors has approved a deal that would allow Morgan Stanley Capital Group to supply Oglethorpe Power Co. one-half of its power needs for up to eight years. The deal has been presented to the 39 Electric Membership Corporations (EMCs) for final approval.
Oglethorpe was divided in early March into separate power generation, transmission and system operations companies, each with its own management. Georgia Transmission Corporation will run the transmission portion of the business, not-for-profit Georgia System Operations Corp. will run the operations portion, and Oglethorpe Power will remain as owner and operator of power generation.
Greg Jones, Oglethorpe spokesman, said Oglethorpe intends to create a more efficient and effective company by spinning off into three specialized units. "All of their energy would be focused on one operation," he said. "Like a lot of others, we see the environment changing. We made this change to align ourselves with the trends that are developing in the industry."
Separate boards of directors will govern each unit, ranging from 9 to 11 members. In addition to EMC directors, the boards will now include industry leaders. This is the first time the company has brought in outside directors, Jones said, which will bring a new level of "expertise to the table."