HARDWICK – The Hardwick Electric Department (HED) has eliminated its general manager and begun to explore a possible merger with Morrisville Water & Light (MW&L) suggests the wording of a separation agreement with former General Manager Sarah Braese and a new Management Services Agreement with MW&L.
There’s been no indication of any plan to explore a merger during public meetings of HED Commissioners, or in press releases.
“MW&L and Hardwick Electric Department (HED) seek to explore the potential of various merger models to strengthen each utility so that customers may enjoy reliable, superior, affordable electric service into the future,” says the first sentence of the agreement to share the management services of Scott Johnstone with MW&L that was signed by Commissioner Mike Ambrosino on October 28 for HED.
On December 12, Ambrosino signed an agreement bringing Braese’s services for HED to an end, which said HED “has decided to begin the process of reorganization for greater effectiveness and efficiency, to a management structure that eliminates the general manager position at Hardwick Electric Department and replaces it with a new general manager position shared across multiple municipal electric departments.
That agreement makes it clear Braese’s “performance has been at all times satisfactory throughout her employment,” and the separation was voluntary. She was to be on paid leave through the end of 2025.
The total severance package awarded to Braese amounts to $111,152.66.
That amount covers final paychecks of $3,082.53 and $14,865.02 to cover the remainder of 2025 and compensation for 169.19 hours of accrued time off at an hourly rate of $76,92 based on her annual salary of $160,000.
Additional severance pay of $73,333.33 is to be paid through the normal payroll cycle from December 15, 2025, through May 31, 2026.
HED agreed to pay the insurance company $18,371.78 for her continuing COBRA medical benefits and pay her $1,500 to cover the cost of her dental and vision insurance through June 30, 2026.
A non-disparagement clause in the agreement restricts the Town of Hardwick, HED staff and Braese herself, from making any negative statements about the other party to the agreement which might harm its reputation.
The agreement with MW&L notes, “When representing HED Scott will identify as the HED General Manager so that customers and staff in HED service territory will understand they are speaking to HED representation.”
Details of the compensation being paid to MW&L for Scott’s management services is not shown in the agreement. It simply indicates Scott’s salary, plus benefits, has been increased by 20% as he takes on the additional oversight of HED. Scott’s total compensation is to be split equally between HED and MW&L, with HED to be invoiced regularly by MW&L.
The HED vehicle previously used by Braese will be available to Johnstone, with HED covering all costs associated with its use.
The agreement with MW&L indicates little about what a process of exploring an HED merger might look like, indicating only that it might take six months.
A sentence does however, suggest the merger is not the only possible result of Johnstone’s coming on board at HED. “Should merger be removed as an option, then Scott·will continue to assist HED while it determines future leadership of the organization.”
At its December 16 meeting, commissioners agreed to work closely with Greensboro and the Town of Hardwick to explore options for the Caspian Lake dam. They decided to ask the Hardwick Select Board to approve an increase in the HED credit line from $300,000 to $575,000 to meet increased needs of the department. An additional loan of $325,000 for a new bucket truck was approved with a plan to submit that too to the Hardwick Select Board for approval.
Paul Fixx is editor of The Hardwick Gazette and lives in Hardwick.
