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Letter to the Editor: Alliant Energy has refused terms in a franchise agreement which would give Decorah residents a fair chance at their energy future

Posted: Sun, Apr 26, 2020 3:44 PM

(The following is a Letter to the Editor from Decorah Second Ward City Council representative Emily Neal):

"Alliant Energy lost a considerable amount of trust with Decorah during the recent municipalization process when they misled us about their future rate increases. I had hoped that some of this trust could be restored during the electric franchise negotiations. Sadly, during Thursday's Utilities meeting, it became clear that this is unlikely to happen. Once again, Alliant refused the terms that would give Decorah residents a fair chance at their energy future.

On February 17th, the Decorah City Council approved a proposed Alliant franchise agreement with a clause that would release the agreement if the Iowa Utilities Board determined another service provider could provide equally reliable but more cost effective service to Decorah, leaving a door open for municipalization. Alliant refused to accept the clause, claiming it would prevent them from recovering their investments. This is simply not true. Another municipalization vote can't happen for another two years. If Decorah made it to the Utilities Board, during this process the Utilities board would determine a fair price for purchase of all of Alliant's assets in the community. When all of this had been determined the franchise could be released.

Alliant's refusal to include this clause in any new franchise agreement gives me pause. As a council member charged with representing the best interests of Decorah residents, I am reluctant to commit Decorah to any long-term contract that would inhibit our ability to municipalize electric utility services at substantial savings to our community, given Alliant's history of large rate increases and its current requests at the IUB for future rate increases. Electric rates in Decorah are astronomical high which is bad for both residents and economic development in our community.

It takes nothing more than the trying times we are now facing to suggest the importance of building strong communities and harnessing our potential for self-reliance. If we agree to Alliant's counterproposal, we may well be sacrificing this cost savings potential."