Alliant Energy sells electric distribution assets in Minnesota

Alliant Energy has sold Minnesota electric distribution assets to the 12 member cooperatives of Southern Minnesota Energy (SMEC).

Effective July 31, SMEC member cooperatives are handling all aspects of electric service to 43,000 former Alliant Energy customers who have become member-owners of their local cooperatives as a result of the sale.

Affected customers have received a transition guide from Alliant Energy and a postcard stating the effective sale date and their new cooperative’s name and phone number. Customers have also received a welcome letter from their local cooperative.

Alliant Energy advises Minnesota customers:

Watch your mail for the name and contact information of the cooperative that serves you.
If you used Paperless Billing, watch your mail. Your final Alliant Energy bill will arrive in postal mail. It will not be sent electronically.
Review any payment programs you were using, such as Budget Billing, Automatic Payment or Paperless Billing. After your service transfers and you have received a new account number, set aside time to re-enroll with your new cooperative.

Financial information

Alliant Energy’s retail service area includes portions of Iowa and Wisconsin. In Minnesota, Alliant Energy will continue to operate its electric generation facilities and will sell electricity to SMEC per the 10-year purchased power agreement exercised as part of the sale.

Alliant Energy sold its gas distribution assets to Minnesota Energy Resources Corporation in April 2015.

Aggregate proceeds from the sales of the electric and gas distribution assets are approximately $145 million, including working capital adjustments and a $2 million promissory note.

The impact of the sale of the Minnesota electric and gas distribution assets was recorded in the second quarter of 2015. The premium received over the book value of the property, plant and equipment sold was more than offset by the tax-related regulatory assets associated with the Minnesota distribution assets resulting in a ($0.06) per share net charge in the quarter.