By SooToday.com Staff
SooToday.com
Friday, November 13, 2009

NEWS RELEASE

CLOVERLAND ELECTRIC
CO-OPERATIVE

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Cloverland Electric members approve acquisition of Edison Sault Electric

DAFTER, MI – Cloverland Electric Cooperative members voted overwhelmingly to approve the cooperative’s proposed acquisition of Edison Sault Electric at a special meeting held Thursday evening in Dafter.

Over 300 members packed the Dafter Township Hall to hear a presentation by Cloverland’s General Manager Dan Dasho and ask questions before casting their ballots.

When the votes were tallied, 96 percent voted in favor.

“The board and I pursued this acquisition because we know it is the single best way for the people of our region to ensure local control of our energy supply, promote long-term rate stability, and improve service through increased efficiency,” said Dasho.

“Tonight, our members recognized this transaction for what it is – an exceptionally rare opportunity to take charge of our energy future. Democratic member control is what co-ops are all about, and I am delighted that we are one step closer to bringing all the benefits of cooperative membership to the customers of Edison Sault Electric.”

Cloverland Electric and Edison Sault Electric’s parent company, Wisconsin Energy Corporation, will now move forward with filings before the Michigan Public Service Commission, the Federal Energy Regulatory Commission, and the USDA Rural Utilities Service. Assuming timely approvals from regulators, the utilities expect the transaction to close by mid-year 2010.

Until then, both Cloverland Electric and Edison Sault will continue to serve their respective consumers as they always have.

“While the regulators review this transaction, we’ll be out in the community talking with folks, answering questions, and working hard behind the scenes to ensure a smooth transition for both customers and employees,” Dasho said.

Should the transaction receive all requisite approvals, the combined utility would serve approximately 42,000 accounts, roughly doubling the size of the not-for-profit, consumer-owned electric cooperative.

Upon closing, all Edison Sault Electric customers would become member-owners of Cloverland Electric and enjoy the benefits of cooperative ownership, including voting rights, board representation and the opportunity for patronage capital refunds – the margins of a cooperative that are returned to members over time.

This year Cloverland Electric will disburse approximately $1 million in capital credit refunds to its members – its largest capital credit retirement to date.

Established in 1938, Cloverland Electric Cooperative is a not-for-profit utility located in Michigan’s Upper Peninsula delivering safe, reliable and affordable electricity to approximately 19,500 homes and businesses in Chippewa, Mackinac, Luce, and Schoolcraft counties.

The cooperative is headquartered in Dafter and maintains district offices in DeTour and Newberry.

In addition to its principal electric business, Cloverland Electric operates Lighthouse.

Net, a wholly-owned subsidiary providing broadband service to the Upper Peninsula.

For more information, visit www.cloverland.com

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