Codington Clark Electric Manager Critiques "Government Taking" of Service Area

Northeast Radio SD News - Watertown, SD - The Watertown City Council heard a formal request during Monday’s open forum to reconsider service territory rights following a recent land annexation.

Dave Eide, the manager of Codington Clark Electric, addressed the council regarding the Boerger Second Edition, a parcel of land near Titan Machinery that was annexed by the city on Nov. 3. Under current practices, annexed land typically shifts from the cooperative’s service territory to Watertown Municipal Utilities.

Territory and Asset Concerns

Eide characterized the shift in service rights as a “government taking of private business,” noting that Codington Clark Electric already has infrastructure in place on the property.

“We have a three-phase line buried right through that property,” Eide told the council. “We also have a loan on that line... what happens is we end up with a stranding of our assets.”

Eide emphasized the financial impact on the member-owned cooperative, which currently carries approximately $34 million in debt. He argued that losing service areas after investing in infrastructure is a “waste of members’ money.”

Calls for Greater Transparency

Beyond the specific annexation, the forum served as a platform to advocate for three primary changes to how the city and the municipal utility interact with surrounding cooperatives:

·        Advance Notice: A request for the city to provide formal notice to the cooperative when annexations are being considered, so they can plan infrastructure spending accordingly.

·        Territory Retention: A request for the city to pass a resolution asking Watertown Municipal Utilities to allow Codington Clark Electric to retain its service territory in the Boerger Second Edition.

·        Board Governance: A recommendation to move toward an elected board for Watertown Municipal Utilities rather than the current appointment-based system.

“I’m coming before the city council because you’re the only elected officials I can talk to about this,” Eide stated, questioning the vetting process for the appointed board that oversees significant annual revenue.

Council Response

Deputy Mayor/Councilman Kyle Peters conducted the meeting, while Mayor Ried Holien was present online. He stated that the council does not engage in debate during the open forum portion of the meeting. He acknowledged the comments and indicated that the city would follow up on the points raised.