Murfreesboro’s decision to sell its municipal electric distribution system has quietly turned into one of the city’s biggest long-term money makers for local causes. The deal with Middle Tennessee Electric Membership Corporation did more than change who sends the power bill. It created a Community Investment Trust that is already steering more than $1.45 million to area nonprofits and helping bankroll city projects.
Sale Terms And The Math
According to a news release from the City of Murfreesboro, the city sold its electric distribution system to Middle Tennessee Electric for $245 million. The structure included a $43 million payment at closing and annual installments of $17,290,134 for 15 years. City documents state that interest brings the total stream of payments to almost $302.4 million.
Officials set aside part of the initial payout for short-term priorities and placed the rest into an invested Community Investment Trust intended to spin off money year after year for capital projects and community needs.
MTE Merger Finalized
Middle Tennessee Electric said the merger was finalized after the Tennessee Valley Authority completed its regulatory review, with closing wrapped up on June 30 and July 1 marking the first official day the two utilities operated as one, according to a release from Middle Tennessee Electric. “Now we begin bringing our two great teams together for the benefit of all those we serve,” MTE President and CEO Chris Jones said in the statement…