Co-ops Enter Shared Management Alliance
Management Cooperative to provide complete management services while preserving the integrity of the local cooperatives
November 8, 2018, Harlan, IA and Jefferson, IA -- Nishnabotna Valley Rural Electric Cooperative and Midland Power Cooperative announce the inception of a management cooperative, a professional management and shared services cooperative. The new entity will provide managerial, financial, communications, billing, IT, and human resources services for both distribution electric cooperatives by leveraging the current strengths, scale and expertise of the co-ops.
Through this strategic alliance, the two cooperatives will share resources while remaining separate businesses with their own identities, assets, and boards of directors. The management cooperative will employ the management team that will oversee the day-to-day operations of the two cooperatives. This sharing arrangement will allow for cost savings through greater efficiencies and the elimination of duplicate services. It will also afford key staff the opportunity to focus on their areas of expertise and provide the skills and knowledge required to meet the changing demands of running an electric utility in the 21st century.
“With the changes and challenges taking place in the electric utility industry, sharing management services and expertise not only assists us in mitigating rising costs, but will also allow our team members to focus on their areas of expertise and enhance service levels to our members,” said Darrell Stamp, Nishnabotna Valley REC Board President. “By cooperating together with people who share our vision and goals, we are all able to accomplish things we could not do on our own. That is what cooperation among cooperatives is all about.”
Both cooperatives will continue to operate their own headquarters offices, and line operations staff will continue to work from their respective service centers. There are no plans or discussions for Nishnabotna Valley REC and Midland Power Cooperative to merge or consolidate. The goals of a merger can largely be achieved through an alliance.
“With the establishment of this management cooperative we believe the cooperative spirit of working together for the greater good of our members is alive and well. This shared services alliance will not only help us become more efficient and cost effective, but it will also expand on our team of high-caliber professionals filling mission-critical positions,” said Jack Runge, Midland Power Cooperative Board President. “We are honored to have Nishnabotna Valley REC as our partner, as both of our organizations have a commitment to pursuing innovative ways to better serve our members.”
The management cooperative will be a cooperative organization owned and governed by Nishnabotna Valley REC and Midland Power Cooperative. Its board of directors will be comprised of three directors from each of the parent cooperatives. The management cooperative will be operational January 1, 2019, and will employ 12 full-time staff, primarily consisting of current management personnel from the two distribution cooperatives.
Nishnabotna Valley Rural Electric Cooperative serves 4,654 member businesses and households in six Iowa counties. The cooperative’s headquarters office is located at 1317 Chatburn Ave., Harlan, Iowa. Midland Power Cooperative serves 11,712 member businesses and households in seventeen Iowa counties. The cooperative’s headquarters is located at 1005 E. Lincoln Way, Jefferson, Iowa.