Steele-Waseca among southern Minnesota cooperatives celebrating 10 years of landmark acquisition
Courtesy: Minnesota Rural Electric Association (MREA)
July 31 marked the 10-year anniversary of the successful acquisition of Alliant Energy’s Minnesota service territory by Southern Minnesota Energy Cooperative (SMEC).
The $127 million deal, completed in 2015, represents the largest-ever acquisition of an investor-owned utility (IOU) service territory by electric cooperatives in the United States.
The historic achievement brought together 12 electric distribution cooperatives, including Steele-Waseca Cooperative Electric, spanning across southern Minnesota, united under SMEC to acquire approximately 43,000 electric accounts and facilitate the seamless transition of 70 Alliant Energy employees into the member-owned cooperatives.
The acquisition meant thousands of former Alliant Energy customers became active participants in a democratic, not-for-profit system. Some of these individuals now serve as co-op board members—making decisions in the best interest of their cooperative and the local communities. Several cooperatives experienced significant growth, with some doubling or tripling their size.
Alliant Energy’s willingness to sell its Minnesota territory as a single unit presented a complex challenge: how could multiple cooperatives structure a collaborative purchase without fragmenting the transaction? SMEC was formed to address this challenge, providing a single point of contact for negotiations while preserving the individuality and autonomy of its member cooperatives.
The acquisition process required regulatory approvals from the Minnesota Public Utilities Commission, Iowa Utilities Board, and Federal Energy Regulatory Commission—taking more than two years to complete. Upon finalization, SMEC was recognized with a national award from the National Rural Electric Cooperative Association for the groundbreaking effort.
As SMEC’s 10-year power purchase agreement with Alliant Energy has ended, the cooperatives celebrate the value of local governance and the cooperative business model.
“This milestone is about more than recounting history—it’s about celebrating cooperative principles at work,” said Darrick Moe, CEO of the Minnesota Rural Electric Association. The 12 SMEC cooperatives in addition to Steele-Waseca are BENCO Electric Cooperative, Brown County Rural Electric Association, Federated Rural Electric, Freeborn Mower Electric Cooperative, Minnesota Valley Electric Cooperative, Nobles Cooperative Electric, People’s Energy Cooperative, Redwood Electric Cooperative, Sioux Valley Energy, South Central Electric, and Tri-County Electric Cooperative.
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