Ozarks Electric Cooperative and Arkansas Electric Cooperative Corporation (AECC) have approved agreements that will change how the two organizations work together going forward.
Under the new agreements, Ozarks Electric will transition from being a member-owner of AECC to a long-term wholesale power customer. The cooperative will continue receiving wholesale power and related services from AECC through November 2030.
The transition gives Ozarks Electric greater flexibility to develop its own long-term power supply strategy as Northwest Arkansas continues to grow and the energy industry evolves.
“This represents an important milestone in the history of Ozarks Electric,” said Mitchell Johnson, president and CEO of Ozarks Electric Cooperative. “Our cooperative has experienced tremendous growth, and the energy landscape has changed dramatically over the past several decades. This agreement provides the flexibility to shape our future power supply strategy while honoring the commitments and relationships that have helped build our cooperative. Most importantly, it allows us to remain focused on delivering reliable, affordable service to the members who own Ozarks Electric.”
During the transition period, Ozarks Electric will prepare for its future resource portfolio, including decisions involving power generation, transmission, demand-side management, renewable energy and member services.
The additional flexibility is also expected to support the cooperative’s continued growth, including expansion of its OzarksGo all-fiber broadband network.
AECC and Arkansas’ electric distribution cooperatives have worked together for nearly 80 years to provide reliable and affordable electricity across the state.
“These agreements reflect a thoughtful, collaborative approach that supports the strong working relationship between our organizations. We are proud of the partnership we have shared and will continue to serve Ozarks Electric during the transition and beyond,” said AECC President/CEO Vernon “Buddy” Hasten.
Beginning in December 2030, Ozarks Electric will become responsible for securing the power and energy resources needed to serve its members. The cooperative will continue honoring commitments and investments associated with its decades-long AECC membership through 2042.
Leaders from both organizations said the agreements will not affect the reliable electric service that members currently receive. The phased transition is intended to provide stability and continuity while giving Ozarks Electric more control over its long-term energy strategy.
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