Annexation for Dollar General hits a snag with MEC Board
By JILL DENNING GACKLE
McLean Electric Cooperative gave the first tug on pulling the rug out from under annexation plans to bring the proposed Dollar General into Garrison.
Mary Dahl, MEC manager, told the city council members Monday night his board didn't like the council mentioning that they would seek power from Otter Tail Power if MEC wouldn't go along with the annexation. He said his board was going to protest the annexation if the city doesn't exclude the 60-day window of opportunity to cancel its contract with MEC after 10 years.
Garrison has a 20-year contract with MEC for power, which isn't up for another 10 years. The contract automatically renews for another 20 years if there is no renegotiation during the 60-day window prior to renewal, which is the window MEC wants removed from its contract with the city.
Dahl said, “Your made my board a little nervous. Our franchise runs out in 10 years and we want to serve new loads out there beyond 10 years and that comment caused some issues.
He said, “What happens is in 10 years our franchise could either automatically go ahead for 20 years or there's a 60 day window when you can say we don't want you serving us anymore.” He explained that investment in an area would require guarantees that costs could be recouped over time.
Although Mayor Stu Merry urged the council to calm MEC's concerns, council members didn't buy into Dahl's offer.
