Thursday, July 27, 2017

Lower Valley Energy exits Joint Management Agreement

Lower Valley Energy (LVE) has begun the process of exiting the management services agreement made with Beartooth Electric.
At the Jan. 31 meeting of the Beartooth Board of Trustees, chairman of the LVE Board Rod Jensen officially gave notice of LVE’s exit from the management agreement. As per the agreement, an exit requires six months notice, so LVE will continue to manage Beartooth until July 31, or until a new Beartooth manager is prepared to take over.
The three-year Joint Management Agreement was signed in Nov. 2014. Under the agreement LVE took over management of both energy co-ops, so LVE’s Jim Webb has been managing Beartooth Electric since April 1, 2015.
The end goal of the management agreement was a merger between the two providers.
January’s notice comes after a recent consensus between both the LVE and Beartooth boards that a merger between the two co-ops would not take place at this time. However, Jensen left potential for a merger to still occur in the future.
Beartooth and LVE continue to have an amicable working relationship. In the Beartooth Electric February 2017 newsletter, Webb writes that although the two co-ops are redefining their working relationship, “both companies have greatly benefited from working together over the past two years.”
Beartooth Electric has begun to search for a new co-op manager and expects to have the position filled by July to ensure a smooth transition from LVE management.