PSC APPROVES EXCHANGE OF UTILITIES' TERRITORIES

JEFFERSON CITY -- The Missouri Public Service Commission Tuesday gave the go ahead to an exchange of territory between AmerenUE and Ozark Border Electric Cooperative.

Both utilities hope to consolidate their service areas through the exchange, which will affect parts of 11 Southeast Missouri counties. The commission's approval had been expected.

The next step is for the two companies to develop a schedule for implementing the changes, which will include the transfer of some existing facilities and equipment and the possible construction of new facilities, AmerenUE attorney William B. Bobnar said.

"Typically, these things take six months to a year to complete depending on the complexity of the issues," Bobnar said.

Affected customers will be notified of the upcoming changes by their current power provider. In some cases customers will have the option of staying with that provider or switching providers.

Service areas to be exchanged include portions of Bollinger, Butler, Carter, Dunklin, Iron, Madison, New Madrid, Reynolds, Ripley, Stoddard and Wayne counties.

After the original territorial agreement between the utilities was announced in June, a number of current Ozark Border members objected to the proposal. However, following extensive negotiations, a new agreement was developed that answered concerns of those opposed to the initial deal.

During a hearing on the revised agreement before a PSC administrative judge Oct. 8, all involved parties, including a group representing about 400 Ozark Border customers in Stoddard County, expressed support for the plan.

Under the revised terms, the new territorial boundaries will remain as originally proposed. However, current Ozark Border customers cannot be switched to AmerenUE without consent.

This applies to any existing structure served by Ozark Border in what would become AmerenUE territory, as well new non-residential buildings built on an Ozark Border customer's property. New residences built on such property that will be occupied by relatives of an Ozark Border member can also be served by the cooperative.

If the current owner sells his property, the new owner will have the option of being served by either company. However, if the property is sold to be subdivided, AmerenUE will provide service to structures built on that land.

Also, if it is not economically or technically feasible for AmerenUE to provide service to a customer in its new territory who requests a switch, Ozark Border will continue to serve that customer.

AmerenUE customers in areas being given to Ozark Border will not have the option of staying with AmerenUE. Bobnar said most affected AmerenUE customers favor the switch.

The agreement also stipulates that the territory swap won't affect areas served by Malden and Poplar Bluff, which operate municipal utilities.