Salem to begin using new wholesale electric power supplier

Lucas said customers will not experience any service interruptions because of the change.

“Power supply contracts, transmission contracts, ancillary service agreements, communication equipment and metering are all ready to provide service,” John Grotzinger, Chief Operating Officer for MJMEUC said.

The change completes a process that began in 2010, when Sho-Me Power Electric Cooperative notified the City of Salem and 14 other South Central Missouri cities that the coop would terminate its wholesale power contracts with the municipalities in 2013.  

After the cancellation notice from Sho-Me Power, Salem joined with 14 other cities to form the Mid-Missouri Municipal Power Pool (MMMPEP) to collectively secure a wholesale power contract. Using a competitive bidding process, the group of cities chose a proposal from MJMEUC, to become its wholesale power supplier.

Eventually 12 of the cities chose the MJMEUC bid over three competing bids.MJMEUC has also provided power to MoPEP, a separate municipal power pool providing full power supplies to 35 other cities throughout the state. Additionally MJMEUC contracts power to 15 other cities in Missouri and Arkansas from individual power plants.

The 12 member cities of MMMPEP include: Cabool, Cuba, Houston, Mansfield, Newburg, Richland, St. Robert, Salem, Seymour, Steelville, Sullivan and Willow Springs. The collective population of the 12 participating cities is 33,567.

MJMEUC is the electric generation and services arm of the Missouri Public Utility Alliance (MPUA) which provides a broad range of services to almost 120 city utilities covering the entire state including natural gas services, consulting on environmental permits, low cost financing programs, and advocacy with state and federal regulators and legislators.