HOLDREGE — The Central Nebraska Public Power and Irrigation District’s board of directors voted Monday’s to proceed to phase two of a study to explore a potential consolidation with the Dawson Public Power District.
Last December, both organizations’ boards agreed to share the costs of retaining a consultant to conduct a phased study to determine whether a consolidation would benefit both entities, as well as their customers and stakeholders.
Phase one of the study, conducted by Power Systems Engineering of Madison, Wisconsin, yielded favorable data that indicates a good strategic fit and positive financial advantages resulting from a consolidation, according to a press release from CNPPID.
Phase two of the study includes a more detailed analysis of the financial components of a merger necessary to satisfy the boards of both entities, as well as requirements of any financial or regulatory agencies. Phase two will also refine the outlook for benefits of a consolidation, work through possible resolution options for potential challenges and complete due-diligence efforts, which involve a deeper analysis of the costs and benefits of a merger.
In addition, PSE will further assess elements of the districts’ governance, finances, facilities, existing contracts, employees, state and federal government regulations and operations of the projects, as well as other categories or topics that may arise during the study.