June 27, 2018 – Residents of the Town of Frederick have affirmed the purchase of the Town of Frederick’s municipal utility, which was agreed to earlier by the Town Council and United Power representatives. The Town’s website reported that the sale of the Town’s assets was affirmed by residents with a 1,716 to 236 count. Nearly 88% of all voters indicated their support for United Power to purchase the system.
“We are excited about bringing the entire Town of Frederick into the United Power membership,” stated John Parker, United Power CEO. “We want to express our thanks to the citizens of Frederick for their support in this process, and we will be working hard to make this transition a seamless process for them.”
The vote was a key step to finalize the purchase. The two entities agreed upon a purchase price of $18 million, with United Power agreeing to drop its pending lawsuit against the Town in exchange. United Power originally filed suit against the Town in July of 2017, for breach of contract and to recover damages for the Town’s taking of service rights located within United Power’s certificated territory. The suit was filed after an attempt to negotiate a settlement failed in early 2017.
“United Power has assembled a transition team that includes key engineering, operations, and member services personnel to work on this acquisition,” stated Parker. “The citizens of Frederick can be assured that we will work as quickly as possible to complete this project, and we will be working hard behind the scenes to meet all your expectations in regard to this sale.”
The election results will not be official until July 6, 2018, in order to allow for the statute-required length of time for overseas military ballots and signature verification processes to be completed.