Your questions answered about Decorah Power and Alliant Energy

(The proposed creation of a municipal electric utility in Decorah has been the top topic in town.  That means we've gotten numerous questions, which we'll try to answer here):

--"Has anyone addressed the actual buy out cost from Alliant?": The buy out cost will be determined by the Iowa Utilities Board.  If the majority of voters cast ballots at a special election in favor of a municipal electric utility, the City of Decorah and Decorah's current electric utility, Alliant Energy, would both submit documents to the IUB with the evidence they think supports their estimate of the value of Alliant's facilities in Decorah.  It's highly unlikely the two groups would have the same estimate, so it's up to the Iowa Utilities Board to get all the information it needs to make a ruling on the amount of money the City of Decorah would have to pay to Alliant Energy in order to take over Alliant's facilities in Decorah--if the Iowa Utilities Board has approved the changeover.

However, the ruling by the IUB might not be the final step--either the City of Decorah or Alliant Energy could appeal the board's decision.

--"How will it be paid--increased property taxes, added on the electric bill, etc?": A municipal electric utility, if it is formed, would operate just like an investor-owned utility in the respect that it would borrow money for large expenses such as the purchase of Alliant's facilities.  Typically, this would come in the form of a 20-year loan, so the municipal utility would have to make sure its rates were high enough to cover these expenses.  There would be no impact on property taxes--the extra cost would be felt on your electric bill.  However, the feasibility study commissioned by Decorah Power claims that the city utility's rates would be lower than Alliant's, even with the cost of the loan repayment included.  Alliant Energy disagrees.

--"How does it affect those living just outside of city limits?:  Sorry, but the answer to this question is, "It depends."  This is another issue which will be settled by the Iowa Utilities Board.  The IUB not only will be asked to set a purchase price for the Alliant facilities, it will also be asked to define the boundaries of the service area a municipal utility would serve.  Decorah Power has proposed the service area should include some properties outside the city limits, especially to the east and west of Decorah, while Alliant has proposed the service area should be limited to the city limits.

--I recall hearing that the City Council wrote a letter, right after the new year, to Alliant Energy asking them to stop installing smart meters until a determination has been made about the future of a city-owned municipal electric utility.  However, I am hearing of meters being installed around town anyway.  Why would Alliant not heed the wishes of the City Council?"  We have also heard of smart meters beginning to be installed.  The letter written January 12th to Decorah City Administrator Chad Bird says nothing about the smart meters.  The Iowa Utility Board could force a new Decorah electric utility to pay the estimated $2 million cost of those meters--or it could require Alliant to uninstall the new meters.  It's also possible the Alliant smart meters could be compatible with whatever system a new Decorah utility would use.