Citizens Electric Corporation (Citizens) has announced that, as of June 1, it will no longer be a member of Wabash Valley Power Association, Inc. (Wabash Valley).
The two entities say this move “will advance the cooperative model through a transition of their relationship to the benefit of both cooperatives' members.”
In a May 30 agreement on the terms of Citizens' transition from Wabash Valley membership and Citizens' purchase of Missouri-based transmission facilities. Under the new agreement, Citizens said it will continue to purchase wholesale electricity from Wabash Valley as a customer through May 31, 2028.
This change is expected to provide Wabash Valley capital for strategic expansion of its member programs and the ability to focus on strategic load growth in its member footprints. It is also expected to provide Citizens with the logistical flexibility and local control to continue serving its members.
Citizens and Wabash Valley, partners for 18 years, have announced their intention to continue working together while the final arrangements are completed.
According to the agreement, Citizens will complete its purchase of the transmission assets by year’s end; however, the company's separation from Wabash Valley requires approval by the Federal Energy Regulatory Commission (FERC), which is expected in early 2025. Until then, Citizens and Wabash Valley have stated their intention to continue delivering electricity to its members at what they describe as “the most affordable prices possible.”
Both parties expect their new relationship to facilitate positive changes to Wabash Valley's generation and transmission business model and provide benefits and flexibility to Citizens’ members as demand continues to grow.
While Citizens will no longer participate as a Wabash Valley member after June 1, 2025, both entities have pledged to “identify synergistic opportunities to increase reliability and decrease costs for the benefit of member ratepayers.”
Citizens was incorporated as a not-for-profit electric cooperative on Nov. 17, 1947. It serves over 27,000 members in portions of six counties in southeastern Missouri and is the state’s largest electric distribution cooperative by kilowatt-hour sales.
For more information about the entities’ change in relationship, contact Steve Elsea, Member Services manager, at 573-768-3930 or Kelli Behrle, communications specialist, at 573-768-3931.
