Proposed Steele-Waseca consolidation with Goodhue headlines town hall meetings

Steele-Waseca Cooperative Electric conducted two of their four town hall meetings, Sept. 9 and 16, at Torey’s Restaurant & Bar in downtown Owatonna with the co-op’s proposed consolidation with Goodhue County Cooperative Electric Association. 

Steele-Waseca General Manager Kelly Hovel, who is also general manager at Goodhue, said consolidation would bring efficiencies, financial stability, better reliability, improved member service, operational resilience, greater bargaining power, and rate stability. 

“Rates will not increase due to consolidation,” said Hovel to the just over 100 members and guests in attendance for the Sept. 16 town hall meeting. However, he conceded other factors like wholesale power costs may still impact rates in the future. 

Hovel said three independent consultants were utilized in moving forward with a proposed merger. Work continues to proceed in addressing changes in the articles and bylaws. He informed attendees at both town hall meetings that information will be sent to each member with plans to conduct a vote in time for the co-op’s annual meeting on June 8, 2027. Hovel said if the members of each co-op approve the consolidation, a new name and logo for the co-op would be developed and capital credits would not change. If it is not approved shared services would continue, but each co-op would exist on their own. 

Hovel spoke of the grid and the work of MISO (Midwest Independent System Operator). He explained MISO manages the movement of electricity from where it is produced to where it is needed. With plans for new transmission lines in southern Minnesota, Hovel encouraged members in attendance at each town hall meeting to reference his column in the August 2026 SPARKS newsletter. 

Line Foreman Adam Davis and Journeyman Line Technician Collin Wencl spoke on power restoration and what is involved whether it involves a substation, feeder lines, or trees impacting a residential service. Attendees at both town hall meetings gave their presentation an ovation with one attendee on Sept. 16 saying, “You guys do a really good job.”

Among the questions asked from the nearly 200 in attendance, Sept. 9: Outside sources that impact rates; Does MISO use AI; More efficient generation sources; Nuclear moratorium; How many data centers will come about; Large loads impacting members?

Questions during the Sept. 16 town hall meeting: Attendance at board meeting policy; What is Goodhue doing for load; Will Carr’s Tree Service still be contracted; What’s being done for more renewable energy; What percentage of energy is from renewables; Are we moving away from fossil fuels; Electric cars impacting the grid; If it’s lightning will crews still come out to restore power; Is underground lines less problematic; What is done when it’s going to be a long duration outage; What kind of voltage do the SWCE line crews work on; How long do line technicians have to go to school; Why the SPARKS newsletter uses QR codes; If the consolidation vote is approved, will it need to be reported to the PUC (Public Utilities Commission)? Hovel will be responding to a number of these questions in future general manager columns in the SPARKS newsletter.