Union City due refund as it withdraws from power agency

·2 min read

As Union City plans to leave the Michigan South Central Power Agency next year, it will get refunds.

The remaining members agreed to give the village money, now held by the joint power action agency in its general fund cash reserves for its five municipal members. The June 30 audit showed $293,503 credited to Union City. It was not identified in the withdrawal agreement to terminate the village membership in MSCPA. This is part of the $18.7 million in cash reserves held by MSCPA for its five municipal members for operations.

Clinton City Manager Kevin Cornish said, “the money came from its ratepayers based on project 1, so it should go back to them.”

“That was our assumption,” Village Manager Chris Mathis said.

On the withdrawal date, excepted on June 1, 2022, MSCPA would refund Union City $206,087 based on prior contributions.

The agency will continue to hold $85,301, the MISO surety fund to pay guarantee grid transmission costs charged to the village.

Just how much MISO will require in surety funds to remain will not be known until it leaves. Union City has been responsible for only around 2% of the agency's power over the last year.

Union City will begin getting its power it doesn’t generate at Riley Dam hydro plant through Wolverine Electric Coop rather than through MSCPA and Amp. The grid operator can go back up to two years for adjustments based on peak load rates.

Union City likely will have to allocate surety funds for MISO from its new provider.

Coldwater and Marshall will buy the transmission rights Union City owns in MSCPA at a price of $5,000 per month for 96 months as part of the withdrawal agreement. That agreement is on track as all the councils of the other members have approved the deal. Clinton and Hillsdale did not participate in the purchase.

Mathis
Mathis
Cornish
Cornish

This article originally appeared on The Daily Reporter: Union City due refunds as it withdraws from power agency

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