FortisAlberta to purchase VNM Rural Electrification Association
September 29, 2015 | By Renée Francoeur
September 29, 2015 – VNM Rural Electrification Association (REA) members have voted to sell their electricity system assets to FortisAlberta. At a special general meeting in June, 97% of members voted in favour to sell these assets, according to the association.
The sale, valued at $16.0 million, is subject to the approval of the Alberta Utilities Commission (AUC), the agency responsible for the regulation of electricity distribution utilities in Alberta. Upon completion of the sale, VNM REA members, who collectively own the REA’s assets, will receive more than $25,000 for each service, FortusAlberta noted. This sale follows the acquisition of Kingman REA by FortisAlberta, recently approved by the AUC.
“Selling VNM REA’s electricity system assets to FortisAlberta is the most appropriate course of action for our members,” says Richard Hadley, president of VNM REA. “We are proud of our long history and what we have accomplished, however, times have changed and our membership understands the enormous complexity of running an REA. We are selling our assets to a trusted partner and a qualified and reliable electricity utility and this was overwhelmingly supported by our members.”
FortisAlberta said it has partnered with VNM REA to operate their electricity distribution system for 65 years.
VNM REA is located in the Barrhead and Westlock County area, northwest of Edmonton.
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