By Joseph Parnell McCarter
Some of Ottawa County already successfully has locally controlled electric utility service, but most of Ottawa County does not, instead lying under the monopoly control of Consumers Energy. Consumers Energy reports to the Whitmer-appointed MPSC, and is following the misguided Net Zero agenda. Here are the stages I propose to attain a locally controlled electric cooperative for this greater part of Ottawa County:
Step One (which we are currently in)
There is an exploratory committee represented by many county township boards which is exploring a locally controlled electric cooperative. Some of its objectives include:
- Garner the support of more township and county boards, as well as elected officials
- Obtain the support of the Trump Administration to help a newly created electric cooperative with its mission of acquiring the Campbell and co-locating a data center which could utilize some of the Campbell’s generated electric. The electric cooperative board could seek a loan from the Department of Energy, and contract with a co-located data center to help with the financing. The latter is an idea we learned from President Trump and the Trump Administration, so hopefully they will be willing to help us do what they have been promoting.
- Establish relations with RUS officials in the Trump Administration. The RUS (Rural Utilities Service) of the Federal Government provides loans by which the electric cooperative board could purchase the distribution grid from Consumers Energy. (The cooperative could alternatively enter into a negotiated capital lease with Consumers Energy for this distribution grid.)
- Obtain the support of possible data centers, one of which could contract with the electric cooperative, and through a contractual arrangement help finance the cooperative project
- Discuss and formulate with legal counsel a plan in stages for attaining the locally controlled electric cooperative. This article represents an initial draft for discussion with legal counsel.
- Determine the funding for a Step Two ballot initiative
Step Two
Seek to obtain from participating township boards, the Ottawa County Clerk, and other relevant parties, a ballot initiative that would appear on the ballot in the participating townships, the following:
- Decision as to whether an electric cooperative board should be established to seek conditional contracts and loans, contingent upon a supportive vote of the electors to proceed once the conditional contracts were in place
- Election of electric cooperative board members. The electric cooperative board could have one elected board member from each participating township, and several at large board members. All could have equal votes on the board.
It should be stipulated that this electric cooperative and its board would have no power of taxation. It would have to obtain all of its financing through loans and other contracts, from various parties.
It should also be stipulated that this electric cooperative and its board would be independent of township and county governments, albeit seeking good working relationships with them.
Step Three (assuming the majority of electors voted in support of Step Two board)
The elected cooperative board would seek to secure certain initial needed financing through loans and other contracts, from various parties, in order to perform its Step Three activity. The main activity would be to obtain conditional contracts and loans, contingent upon a supportive vote of the electors to proceed once the conditional contracts were in place. These contracts and loans would be to acquire both the Campbell plant and likely also the distribution grid from Consumers Energy, while also seeking to obtain continuing contractual relations with Consumers Energy for various services. The goal would be to have a good relationship with Consumers Energy, and not an adversarial relationship. The cooperative board would have a thoroughly formulated approach to electric generation at the Campbell, and electric service for the area covered, for presentation to the public. The cooperative board would work with relevant parties to secure a place on the ballot for the Step Four vote.
Step Four
A vote of the electors in the participating townships on whether the electric cooperative board could proceed and execute the conditional contracts and loans.
Step Five (assuming the majority of electors voted in support in Step Four vote)
The elected cooperative board would execute what electors approved in the way of contracts and loans, as well as its previously formulated approach to electric generation at the Campbell, and electric service for the area covered. The electric cooperative’s revenues would be generated from Campbell plant electric generation, as well as distribution of electric in the area served. These revenues would be used to cover cooperative expenses, as well as to pay principal and interest on cooperative loans. A data center could pay a premium for the electric, so that residential rates can be reduced.