Southern Minnesota cooperatives celebrate 10 Years of landmark acquisition

This historic achievement brought together 12 electric distribution cooperatives 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. 

Brian Krambeer, CEO of MiEnergy (formerly Tri-County Electric Cooperative), reflected on the journey, “It’s an extraordinary example of what electric cooperatives can accomplish when they come together. This acquisition wasn’t something any of us could have done alone — but together, we achieved something transformative for southern Minnesota’s communities.”  

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. 

“This acquisition was truly a win-win,” said Jim Krueger, CEO of Freeborn Mower Electric Cooperative. “It improved our efficiency and spread fixed costs over a larger membership base while providing our new member-owners with access to reliable and cost-effective electricity.” 

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. 

Today, as SMEC’s 10-year power purchase agreement with Alliant Energy comes to an end, 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.