The vote follows months of study by cooperative management, with assistance from Harper Consulting of Columbus, Indiana.
Harrison Electric provides electricity to approximately 13,000 consumers in eight counties, primarily Harrison, Pendleton, and Bourbon counties. Blue Grass Energy serves nearly 34,000 consumers in 15 central Kentucky counties, including Madison, Fayette,
Jessamine, Anderson, Franklin and Mercer.
"We are very excited about this opportunity," said Dan Brewer, president and CEO of Blue Grass Energy. "Our cooperative went through a successful consolidation with Fox Creek RECC in 1998. This new consolidation would only enhance our efforts to maintain stable rates, while improving service."
"While Harrison Electric’s rates are currently higher than those of Blue Grass Energy, neither co-op would see a rate increase as a result of the consolidation," he said. "In fact, by reducing costs, a consolidation would help us both in our efforts to hold the line on rates and perhaps reduce them for some consumers of the new organization."
Preliminary studies indicate that the consolidation could result in savings of more than $10 million for the joint cooperative over the next nine years.
According to Ken Carpenter, president and CEO of Harrison Electric, the savings to the combined system will be possible because of the elimination of duplicate functions and services.
"We’ll have one headquarters and fewer employees, but we’ll provide the same quality services that we always have," Carpenter said.
The boards of the two utilities have proposed that the new office for the joint cooperative be located in Nicholasville. The Harrison office would operate as a district office, providing customer support and services for both billing and operations. "Consumers will see no change in the level of service provided," said Carpenter. "Customers will still be able to pay their bills, report problems and request service at the Harrison office."
Employees will not lose their jobs as a result of the proposed consolidation, Brewer explained. Workforce reductions at the two offices will occur through the realignment of responsibilities, retirement, and natural attrition.
Because cooperatives are owned by those they serve, a consolidation of the two systems will require the approval of the cooperatives’ members. Plans are now being made to prepare for a membership vote in August.
Plan documents will also require the approval of the Kentucky Public Service Commission. If approved, the consolidation will become effective Jan. 1, 2002.
Kentucky Association of
Electric Cooperatives, Inc.
4515 Bishop Lane * Louisville, KY 40218
502-451-2430 * FAX: 502-459-3209 Terms of Use
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