Alger Delta will be closed at 2:00 p.m. on Christmas Eve. Our office will also be closed Thursday and Friday, so our employees can celebrate Christmas with their families. You can report outages or make payments after hours or during holidays by calling our main number (906) 428-4141 or 800-562-0950.
At a special meeting on Tuesday December 2, the Alger Delta board of directors voted down a policy waiver that would have allowed merger talks with Great Lakes Energy (GLE) to continue. Five directors voted for the policy waiver, four voted against. The waiver failed to achieve the 2/3rds majority needed to change the policy.
Policy 116 is known as the “No Sale” policy. The policy states that the cooperative is not for sale and that any director, officer or manager who is presented with an inquiry regarding the sale or merger of the cooperative shall respond that the cooperative is not for sale and shall promptly notify the board.
The merger proposal submitted by GLE was presented to the Alger Delta board at its regular meeting on October 15. The proposal stated that, using current rates, the average Alger Delta consumer would save over $24 per month. The proposal also said a merger would entail increased investment in maintenance and tree trimming, changes to the governance structure, and other potential benefits. Based on GLE’s proposal, the board voted 8 to 1 to enter into exploratory discussions.
According to attorney’s familiar with the situation, the vote to enter into exploratory discussions constitutes an implicit waiver of the “No Sale” policy. Even so, upon becoming aware of the policy, Great Lakes Energy asked Alger Delta to formally waive the policy. A formal waiver would pre-empt legal challenges should a merger of the two cooperatives occur; and ensure that additional investment of resources would not be wasted.
The Alger Delta board was to review a business analysis of the proposed merger on December 17. The analysis, prepared by an independent consultant with expertise in utility mergers, identified and quantified the benefits of the proposed merger. The meeting has been cancelled and no further plans have been made.
Since the policy waiver failed to achieve the 6 votes needed for passage, GLE says they remain open to a merger but will not pursue the matter without support from the Alger Delta board of directors.