Proposed Jerseyville Project: What It Means for MJM Members

MJM members have asked about our obligation as an electric cooperative to serve new members/consumers and how serving the proposed Jerseyville project could affect their electric service and costs. Those are fair questions. Our priority is to maintain reliable service; protect the cooperative’s financial position and ensure the proposed project provides value to our members.

Here are the key facts about the proposed service arrangements:

Protecting members from project-related costs
MJM will not take on debt to serve this project. The developer is required to pay its infrastructure costs through rates and upfront interconnection payments. Additional protections include performance guarantees, a prepaid power bill, and substantial financial assurance.

Keeping project power costs separate
Power for the project would be purchased at an open-market rate and passed through to the developer, rather than supplied through MJM’s long-term power contracts. MJM would collect a distribution charge for delivering that electricity. Revenue from that charge would help increase system wide improvements and support stabilized rates for cooperative members.

Improving reliability with or without the project
Planning for the new substation began before the proposed project. The substation is needed to improve reliability and accommodate future electric demand. The project may use the substation, but the need for it is driven by reliability for the community.

Retaining value if the developer leaves
If the developer later leaves, MJM would retain the reliability improvements and the margins earned while the project received service. The financial protections described above are intended to address the developer’s obligations and reduce risk to the cooperative and its members. This is part of MJM’s large load process. Member protections are required.

Explaining the land sale
A change in the substation design left MJM with surplus acreage. MJM’s Board discussed and approved the sale of that property, which is scheduled to be sold at a price designed to recover MJM’s original investment.

No project incentives from MJM
MJM offered no incentives to the developer for this project or to attract this project.