The Murfreesboro City Council Thursday approved the use of Murfreesboro Electric Department contingency funds to pay for legal expenses related to the possible sale of MED to Middle Tennessee Electric Membership Corporation.
Approval, in the form of Resolution 19-R-22, came during a Joint Public Meeting of the Council and the Murfreesboro Power Board following an executive session. The Council Resolution authorizes the expenditure of funds in an amount not to exceed $500,000 from MED's Contingency for Storms and Unanticipated Growth or MED's Cash Reserves to pay for due diligence expense related to a Proposed Transaction. As part of the Resolution, the City Manager and City Attorney shall provide a summary of all such expenditures to the MED Power Board and City Council on a monthly basis.
Murfreesboro Electric is a department of the City of Murfreesboro and currently governed by a board of directors, the Power Board, which is appointed by the City Manager with consent of Council and which sets its budget and makes policy decisions.
MED operates under a contract with The Tennessee Valley Authority (TVA), a corporate agency of the federal government. The TVA provides all of the electricity distributed by MED to its customers.
More details on the Resolution 19-R-22 (Payment of Murfreesboro Electric Department Due Diligence Expenses) are available in the agenda and can be viewed at http://www.murfreesborotn.gov/AgendaCenter/ViewFile/Agenda/_10032019-1080. Further details of any possible merger agreement of the two utilities will be discussed at a future Council meeting.
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