MURFREESBORO, TN (WSMV) - Murfreesboro City Council has adopted a resolution that would lead to the sale of the city's electric system and operations to Middle Tennessee Electric Membership Cooperative.
The merger of Murfreesboro Electric with MTEMC would give the city $302.35 million over the next 15 years to fund infrastructure and long-term economic development projects.
The city said that the merger will have a positive effect on rates and service in the future. The merger would need to be approved by the MTEMC board of directors and submitted to the Tennessee Valley Authority for approval. It would take several months for TVA's approval.
Upon closing on the merger, the city of Murfreesboro is anticipated to receive $43 million and the remaining amount will be paid over 15 years. In addition, city employees at Murfreesboro Electric will be offered positions at MTEMC.
Letters and emails obtained by News4 show leaders at MTEMC and the city have been working to keep some documents out of the public eye. City officials, including the mayor, has been using their personal email addresses.
Middle Tennessee Electric currently serves more than 225,000 customers in Cannon, Rutherford, Williamson and Wilson counties. Murfreesboro Electric serves more than 65,000 customers.
The downside of the sale would be the city loses control of its power company.