Study of Elizabethton Electric to play part in potential merger
Published 7:49 am Wednesday, December 13, 2017
As the talks potential of a merger between Elizabethton Electric and BrightRidge continue, one potential measure could provide to be vital service for city customers.
City Council members vote Thursday evening to enter into a cost-sharing agreement with BridgeRidge to complete a study and valuation of Elizabethton Electric, which would include field assessment to determine condition and upkeep of key assets along with estimates of necessary investments in the system.
In dockets provided by City Hall, Rob Toney, general manager for Elizabethton Electric, added that talks between the systems led to the agreement of a 70/30 cost split for the $80,000 study, which will be performed by MidSouth Utility Consultants. The City’s contributions to the study would be $24,000.
According to the documents provided, Toney added that even if the merger did not happen, the documents would be useful for the future of the facility. The agreement would also see the BrightRidge Board of Directors and City Council meet in a few workshops to go over findings and results from the study, which is anticipated to take up to 12 months.
City Council agreed November to look at the possibility of a merger between the city’s system and BridgeRidge, based out of Washington County. According to information provided by BrightRidge, the system is the 10th largest public power provider in the Tennessee Valley Authority System with 78,000 customers while Elizabethton Electric is at 26,068.
“We are seeing businesses and agencies across the region look to mergers to lower costs for their customers by increasing efficiencies,” BrightRidge CEO Jeff Dykes said in a statement issued to the Elizabethton Star. “This is really no different than the Mountain States/Wellmont merger creating Ballad Health or the creation of the NETREP economic partnership. To borrow the phrase, truly, we are stronger together.”
Any consolidation agreement between the systems would require a majority vote by Council, BrightRidge’s Board of Directors and the public at a referendum to be provided by Elizabethton Electric.
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City Council will also look at approving an invoice provided by Thomas Weens Architect in regards to a professional services agreement for the improvements of Joe O’Brien Field. Elizabethton is currently in the process of looking at improving the facility for the coming year after an agreement was forged between the City and Minnesota Twins front office to continue the Elizabethton Twins Minor League Baseball play at Joe O’Brien Field. The cost of the study is $25,575.50, which would be paid by the City, which would then submit a request to Minnesota for reimbursement.
Action also continues to pick-up for the future of the management of the facility. The City has looked into bringing in a sports management company to handle the duties of the ball club, with Boyd Sports reportedly at the top of the list.