The U.S. Department of Agriculture has awarded a $13,400 Rural Business Development Grant to Decorah Power to help offset the cost of a feasibility study of a public electric utility in Decorah.
The feasibility study is currently underway. It's examining the option of Decorah establishing its own municipal electric utility, a city utility that would provide electricity services in the same way that the city currently provides water and sewer services.
Decorah is now served by Alliant Energy, a Madison, Wisconsin investor-owned utility, under a 25-year franchise agreement that expires in June of next year.
Decorah Power is a local non-profit that was established earlier this year to explore the electrical municipality option. In March, the City Council placed a moratorium on franchise negotiations with Alliant, approved of Decorah Power conducting a feasibility study with privately raised funds, and appointed Steve Luse as liaison to Decorah Power. The feasibility study is expected to be completed before the end of the year.
If the study comes back with positive findings for the community, Decorah Power will ask the City to place a public referendum on the ballot sometime in the spring. If Decorah voters approve the referendum, the Decorah City Council would have the option of petitioning the Iowa Utilities Board with an application to establish its own municipal electric utility.