Southwestern Electric Cooperative Inc. has notified Soyland Power Inc. it will terminate its electric supply contract and buy its full requirements from Cinergy Corp.
The cooperative said it can buy the wholesale power from Cinergy at a lower price. It is expected to start receiving electricity in April under a five-year contract. The agreement includes other services Cinergy may provide to Southwestern Electric Cooperative, such as economic assistance and new-business development opportunities. Cinergy might become the total energy provider for Southwestern, including supplier of natural gas and propane, maintenance of customer-owned equipment and power-quality services.
Southwestern's buyout from Soyland Power and its interest in the Clinton nuclear plant will require capital financing of about $40 million. As part of the financing, Southwestern applied for and received an investment-grade rating from Standard & Poors, which will enable it to secure the lowest possible interest rate with maximum flexibility.
"In a deregulated environment, local control over commodity purchasing and retail pricing is more important than ever before," said Southwestern Electric Cooperative Vice President & General Manager Gary Wobler. (em LB
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