There are draft stages for attaining a locally controlled electric cooperative, but needed also is a draft deal for discussion purposes. Here I propose it:
- The electric cooperative obtain Consumers Energy’s majority interest in the Campbell property, but assume the environmental and other liabilities associated with that interest. It should be noted that the estimated fair market value of the Campbell property is significantly below the estimated liability value.
- The Office of Energy Dominance Financing provide financing and technical know-how for the following likely projects: conversion of unit one or two at the Campbell to gas from coal, additional anti-polluting equipment in the coal units, treatment of the wastewater to be used in co-located data center (instead of currently planned deep underground injection), and use of fly ash for extraction of rare earth minerals and additional industrial uses (in addition to what Consumers Energy has already arranged).
- Long-term contract with a data center to be co-located in the Campbell area, utilizing Campbell generators for its energy needs, and with no backup diesel or gas generators. This would also include stipulated provisions to curtail noise pollution.
- Purchase at fair market value, less the excess of liability of the Campbell over the Campbell property’s fair market value, by the cooperative from Consumers Energy its area distribution grid, financed by a RUS loan, combined with a two-year service contract with Consumers Energy to run this distribution grid at agreed upon rates. The electric cooperative board would superintend this service contract with Consumers Energy, as well as decide upon what should happen after the conclusion of the initial service period.
The electric cooperative would pay down its loans over time from revenues generated by its Campbell electric generation as well as electric distribution in its covered area.