Four area banks contribute $24,000 to help with Decorah Municipal Electric Utility Feasibility Study

Decorah Bank, Viking State Bank, Kerndt Brothers Savings Bank and Farmers and Merchants Savings Bank have joined together to donate $24,000 to the cost of the municipal electric utility feasibility study.  Decorah Power, a local citizens group, has commissioned the study, which began in August.  The bank contributions, together with a USDA grant and a contribution from Luther College, account for over half of the funding needed for the study.

"The four banks see the study as an important step to determine if a Decorah-owned electric utility is financially feasible," said Decorah Power president Larry Grimstad, a retired banker.  "Our local bankers have connections with bankers in communities that have their own electric utilities, and they have been impressed with the economic value those utilities have provided to their communities."

There are 136 community owned electric utilities in Iowa and 125 in Minnesota. Community owned electric utilities are known for maintaining their profits in their communities. Local management and decision-making normally provide local investment opportunities and support local accounting, insurance, and banking services, vehicle purchases and community projects.

Decorah Power is a non-profit citizens group investigating the formation of a Decorah Municipal Electric Utility—a locally-owned city utility that would provide electricity services in the same way the City of Decorah currently provides water and sewer services. With the support of the Decorah City Council, Decorah Power is conducting a feasibility study with privately-raised funds. The study is expected to be completed before the end of the year.

For more information about Decorah Power, visit www.decorahpower.org