U.E. SELLS PART OF ITS CUSTOMER BASE TO SIKESTON

SIKESTON -- Union Electric Company and Sikeston city officials have announced the completion of a $100,000 sale of UE's electric business to the city.

The sales, completed Friday, transfers about 60 residential and 20 commercial customers to the city of Sikeston. The agreement also give the city the right to serve one customer outside its municipal boundaries.

UE, headquartered in St. Louis, is selling about 30 miles of distribution facilities in Scott County and one-tenth mile of distribution facilities in New Madrid County.

The city will realize annual revenues of about $82,000.

"Union Electric Company's decision to sell its Sikeston properties was based primarily on economics," said Virgil Chirnside, manager of UE's Southeast District. "Our Sikeston customers were remote from our other facilities, making that area expensive to serve. We were also facing rising costs there with no prospect for growth to offset those costs."

In January, the two parties sought Missouri Public Service Commission (PSC) approval both for the sales and for a territorial agreement that would allow Sikeston to serve the one customer outside municipal limits. The PSC issued its approval May 25.