City of Decorah, Alliant Energy appear to be still far apart on a franchise agreement

Posted: Fri, Apr 24, 2020 3:09 PM

Members of the City of Decorah's Utilities Committee held a video conference with Alliant Energy representatives Thursday afternoon to continue talking about a new franchise agreement between the city and the utility.

Without such an agreement, the city would be charged for work done by Alliant crews to move electrical wires for a city project, including this year's Locust Road project.

But the two sides seemed no closer together following an 80-minute minute Thursday.

Second Ward councilperson Emily Neal led the criticism of Alliant Energy for wanting a 15-year franchise agreement with opt-out clauses after the 5th, 7th and 12th years. She wants language included which would allow Decorah to opt out at any time the Iowa Utilities Board rules in favor of allowing a municipal utility if it could be shown the municipal utility could provide the same service at a lower cost than that charged by Alliant.

Under the terms of a franchise agreement, Alliant Energy does not charge communities for the work it does for a city project such as Locust Road. Alliant Energy representative Marty Mensen said the utility could not allow communities to opt out whenever they want because other towns would then have to pay the costs of the work done in Decorah.

Alliant Energy originally proposed a 15-year franchise agreement with no opt out, then changed to an opt-out after 8 years and now is offering an opt out at 5 years. Mensen says the five-year opt-out "is what we're comfortable with."

Decorah Mayor Lorraine Borowski told the meeting the city should NOT lose out on saving the money which would be charged by Alliant for the Locust Road work. City council member Randy Schissel agreed.

After an 80-minte discussion, the Utilities Committee adjourned with the understanding it will meet on its own in the near future.