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Alger Delta Co-op merger should be at least explored

The Alger Delta Cooperative Electric Association is exploring a merger with Great Lakes Energy Cooperative, a downstate co-op which provides electric service to more than 125,000 members in 26 counties in western Lower Michigan.

We think the two cooperatives should at least explore the idea of merging because of the potential benefits that could be provided for members of both of the cooperatives. In a region where increased energy costs are a rising concern, we think exploring measures to help members reduce costs and rates are well worth discussing.

Officials project Alger Delta’s rates could be consolidated with Great Lakes Energy’s rates within five years, providing cost savings for Alger-Delta customers. Cooperative officials said using current retail rates, the average Alger Delta residential member would save more than $24 monthly with GLE’s rates.

Additional potential benefits for Alger-Delta members could include improvements in electrical reliability and receiving an enhanced level of service.

Great Lakes Energy members could benefit from growth provided by Alger-Delta’s 10,000 members, with costs spread over a wider consumer base.

If the boards of both cooperatives approve a merger, the memberships of both organizations would also have to approve the measure. Officials said those membership votes could come early next year, pending board approvals.

We wish the two cooperatives the best in their exploration of this potential deal. We also urge members to communicate to their leadership about any potential problems or concerns they might have about entering into the new alliance.

Meanwhile, we await the outcome of the talks.

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