Safford and Co-op sign historical agreements

By Jon Johnson
Assistant Editor
Published on Sunday, January 4, 2009 12:27 PM MST

After locking horns for more than 62 years, the city of Safford and Graham County Electric Co-op signed new service contracts Tuesday evening that explicitly define new service areas and will facilitate a new era of cooperation, according to the parties.

The good vibrations of the evening were in the air as it was mostly all smiles, jokes and warm feelings between the two sides as they met and began their meeting.

The groups met at the co-op’s new building in Pima to solidify the agreements that replace the problematic 1946 agreement and a previous transmission agreement.

Graham County Co-op President Gene Robert Larson, left, and Safford Mayor Ron Green sign electric service contracts that replace a 1946 agreement. Both parties said the new agreement ushers in an era of cooperation between the two public utilities. Photo by Jon Johnson

The first contract, called the Territorial Settlement Agreement, quells litigation between the utilities and defines a new service area for Safford. The agreement also swaps service rights to the Wal-Mart Supercenter and Safford Regional Airport on Jan. 1, 2013. The co-op will receive the rights to the airport and Safford will receive the rights to the Wal-Mart property.

The second contract, called the Wheeling and Transmission Agreement, solidifies transmission service rates and will update Safford’s Eighth Avenue substation to incorporate a 69 kilovolt circuit breaker ring bus, among other upgrades.

Co-op President Gene Robert Larson said while he believed that the two parties had been bickering over the 1946 agreement since before the ink had even dried, the new contracts are “a great agreement for this Valley.”

Safford Mayor Ron Green expressed his gratitude to the co-op’s board of directors for working with the city to accomplish a new agreement with special thanks to Safford Engineer Dennis Delaney and Richard Kurtz of the Arizona Electric Power Cooperative.

“The thing(s) that we can do together will be good for everybody,” Green said. “It’ll make our power grid stronger here in the Valley for both Safford, Thatcher, Pima and the county.”

Delaney and Kurtz were the “architects” of the agreements and presented several different proposals before finding one that was acceptable to both sides, according to Kurtz.

Co-op General Man-ager Steve Lines echoed Green’s statements and said the utilities’ missions are to serve the residents with the best electric service they can and that the new agreements assist in providing to do so.

“We recognize each other’s territory and existence,” Lines said. “And like I say, ‘We’re interconnected electrical anyway, but now we’re interconnected where we can work together (and) plan together. . .”

Lines said that with the new contracts in place, the city and co-op are in a position to help each other with various needs, especially assistance with infrastructure and future needs.

He said people may nit pic at the details of the contracts, but there is always give and take in any kind of agreement.

“That’s what’s been accomplished here is there was give and take on both sides,” Lines said. “There was middle ground that was achieved, and now both utilities are going to benefit from it.”

Safford City Manager David Kincaid said an added benefit to the city is an expenditure savings of hundreds of thousands of dollars due to not having to build a new substation. He said Safford was budgeting for a new substation, but with the WTA in place, it will only have to upgrade its Eighth Avenue Substation.

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Comments

13 comment(s)

Cheech wrote on Jan 18, 2009 1:01 PM:

" Oh here we go again, fighting over here was here first. Who cares? Or, maybe we should care. It's the old ingrained redneck "don't change nothin'" mentality that has this place stuck in a rut, years behind other towns it's size. My family was here first. No my family was here first, No, No, mine was. My grandfather 56 times removed was a cave man, so we were here first. Yeah, but he married one of the Lizard Family so we were here first. Yeah, but she really came from the Ratpack Bunch, so we were here first. Yeah,but.......... "

Chong wrote on Jan 14, 2009 5:51 PM:

" To Pima Two, The so called pioneers of the valley moved onto lands that were not being used by the mexican residents that were allready here, some of whom were my ancestors. So who were the pioneers? Not us either, We moved into the area where the indians used, using there irigation system that was abandonded years before. "

Pistol Pete wrote on Jan 8, 2009 1:50 PM:

" Was anyone packing heat at this meeting? I was wondering why know one ever filed charges on Baby Huey Long for the last incident when he pulled a gun? "

One who knows wrote on Jan 8, 2009 1:48 PM:

" John the Baptist you should repent. The CO-OP provides power to alot of Thatcher, Quail Ridge for one as well as other parts. Get your facts straight. "

PimaTwo wrote on Jan 8, 2009 8:21 AM:

" It's pretty smiple John the B, The cities are trying to make money on the power pure and simple. When they can't it's not very pretty.
Why did safford shut down and clear out the power plant anyway if it was such a good thing? The cities with their lethargic overhead are always slow to respond to the price flucuations. So now they are caught with their pant's down.
And by the way you should abstain form name calling, my Pioneer Family founded the Gila Valley so what's that all about. "

TEP employee wrote on Jan 6, 2009 6:55 PM:

" Safford City Manager David Kincaid said an added benefit to the city is an expenditure savings of hundreds of thousands of dollars due to not having to build a new substation. He said Safford was budgeting for a new substation, but with the WTA in place, it will only have to upgrade its Eighth Avenue Substation.

WTA had no bearing on this quoted lie.. it was lack of cooperation from the beneficiaries of the WTA "

John the Baptist wrote on Jan 6, 2009 6:51 PM:

" Mr. Pima pants... Last time I checked the co-op did not supply power to Thatcher...... By defiition the co-op's serve rural unincorporated areas not cities and towns unless there is no other option. Safford as been in the power business for a very long time like since or before 1946. Safford even had a power generation plant for many years.... either you have forgotten or you have not been around as long as me an my pioneer family...... "

PimaTwo wrote on Jan 6, 2009 12:08 PM:

" I don't understand why the City of Safford just does not let the Co-op provide power like they do to everyone else in the area. The cost would most likely be lower in the long run. However Safford would not be able to make any money on the power like they have for the past 60 years. That's why your rate has stayed as low as it has duh!!
Safford simply did not pay for the infrastructure in the areas they annexed, nor were they paying the going rate for the power. Can't have it both folks sorry! "

What gives wrote on Jan 5, 2009 10:59 PM:

" Can anybody tell me what Safford gained from this "Historic agreement"? Give and take are said over and over What did the co-op give??? What was "problematic" about the 1946 agreement? I have heard that it was upheld in Safford's favor twice by the Supreme Court. Truth be known.. I have heard co-op board members and their friends laughing at Safford's willingness
to agree to such one sided benefit package. I guess we can't expect much from the Safford negotiating team... just look at who they were. Better luck next time. "

Mr. Creosote wrote on Jan 5, 2009 3:00 PM:

" Thats it! Blue jeans and a tie! Come people with all the brain power that goes into this site at least we could come up with some thing witty! You have really disappointed me,this site makes my life complete and now i think I will need therapy! Where is all the sour grape wine when I need it! "

will the real who cares please stand up.. wrote on Jan 5, 2009 12:54 PM:

" lol cuz he is always dressed like that in other pictures haha i would bet huge money if he stood up you would see blue wrangers "

the real who cares wrote on Jan 5, 2009 3:13 AM:

" Dude, you took my name................ it'cool cause I have no comment on this article, but how did you know the guy is wearing blue jeans ??? "

who cares wrote on Jan 4, 2009 12:41 PM:

" The mayor wears blue jeans with a dress shirt and tie how lame. "

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