STATEHOUSE (Feb. 11, 2010) - State Sen. Beverly Gard’s legislation, sponsored by Rep. Bob Cherry (R-Greenfield),  allowing rural telephone and electric cooperatives to merge or consolidate into a single co-op won unanimous approval today by a key House committee.

By a 10-0 vote, Gard (R-Greenfield) said members of the House Commerce, Energy, Technology and Utilities Committee passed Senate Bill 126, sending the legislation to the floor of the Indiana House of Representatives for consideration.

During the hearing, Central Indiana Power Board President James Cherry and Hancock Telecom board member Robert Glazer testified in support of the legislation.

“Indiana’s rural communities could benefit from mergers between these co-ops,” Gard said. “I applaud the committee’s decision to pass the bill and I am optimistic about the potential efficiencies that could be gained by Hoosier co-op members.”

According to the National Rural Electric Cooperative Association, electric and telephone cooperatives are member owned, independent utilities. While larger utility companies may be publicly traded, these co-ops are owned by the customer-members they serve.

Gard said rural telephone and electric cooperatives were developed in the 1930s by the federal Rural Electrification Administration (REA). President Franklin Roosevelt established the REA to provide electricity to rural areas left in the dark by large utility companies which could not profit by serving remote locations with low population densities.

 ”Merging two rural co-ops could increase the utilities management efficiencies and streamline efforts to bring service to Hoosiers in rural communities,” Gard said.

Gard said Indiana currently permits electrical co-ops to merge with one another and the same to occur between telephone cooperatives.

Under Gard’s legislation, the Indiana Utilities Regulatory Commission would maintain jurisdiction of the  electric distribution service territories and universal telephone services.

Gard represents Senate District 28, which is composed of Hamilton, Henry and Hancock counties.