In a landmark agreement, the Southern Maryland Electric Cooperative (SMECO) and the U.S. Navy have committed to a 50-year privatization of the Naval Support Facility (NSF) Indian Head, including the main base and Stump Neck Annex. Starting in October 2024, SMECO will assume full ownership and operational responsibility for the base’s electrical infrastructure.
NSF Indian Head, whose origins date back to 1890, is the Navy’s inaugural base in Southern Maryland. Today, it is a significant employment hub, with over 1,900 employees, supporting all U.S. military branches through various scientific and tactical missions.
Sonja M. Cox, President and CEO of SMECO, expressed honor in being chosen for this venture. “Our local military facilities are integral to our local economy and among the largest employers in Southern Maryland. They also play a vital role in our national security,” Cox stated. SMECO’s history of collaboration with military facilities includes privatizing three other local bases in 2009, such as the Patuxent River Naval Air Station, the Webster Field Annex, and the Navy Recreation Center in Solomons. The latest agreement to operate and maintain NSF Indian Head and the Stump Neck Annex marks another significant stride for the cooperative.
The formal award of the contract was executed on December 12, 2023, initiating a transition period set to continue until October 11, 2024. In this phase, SMECO is tasked with several preparatory activities, including conducting a joint inventory of the existing electric system, initial system inspections, forming a dedicated support team, and mapping the system.
After completing the transition phase, SMECO is expected to take ownership of the electric utilities at NSF Indian Head and the Stump Neck Annex on October 12, 2024. The privatization plan includes substantial infrastructure enhancements, such as the installation of 775 meters, upgrades to substations and distribution systems, and extensive vegetation management.
Roger Schneider, SMECO’s Senior Vice President of Engineering and Operations, highlighted the cooperative’s strengths, including system reliability, disaster and storm response, customer service, and competitive rates. Schneider recalled the significant improvements SMECO made in 2012 when it acquired a sub-transmission feed to the main base at Indian Head. This feed, dating back to the mid-1940s, was critically deteriorated. “We made major improvements to the line while maintaining service to the facility throughout the upgrade,” Schneider said.
This strategic partnership between SMECO and the U.S. Navy is set to enhance the operational efficiency and reliability of the NSF Indian Head’s electric system, ultimately benefiting both the military facility and the cooperative.
