Approving potential Decorah MEU would provide an option — nothing more

By Tim Wagner, Decorah

I was thrilled to recently hear that local business owner and Decorah resident Cody Whittle has announced his candidacy for the upcoming Dec. 10 city council election. One reason why is that Cody supports the exploration of a municipal electric utility option for Decorah, while his main opponent does not.

For background, Decorah held a city-wide municipal vote to consider establishing its own Municipal Electric Utility in 2018. The measure was defeated by just three votes. According to state regulations, a city must wait five years minimum before considering this again.

Then, as is now, all of Decorah business and residential customers rely on Alliant Energy — a Wisconsin based investor-owned utility, or IOU — for its electrical needs. Alliant is a power-generating utility, meaning it owns most of its generating capacity, whether in coal or natural gas-fired plants, as well as a portion of wind and solar. Under a contract with the Iowa Utilities Commission, Alliant provides power to much of eastern Iowa, which means they have little to no competition. This is often called a regulated monopoly.

Iowa’s other large-scale IOU is Mid-American Energy, based in Des Moines and owned by Warren Buffet.

The power needs of some parts of Iowa and smaller cities and towns are also met by either rural electric cooperatives — RECs — or, as in the case of more than 135 Iowa communities, their own MEUs. The main difference RECs and MEUs have from big IOUs is that, instead of owning their own generation capacity, they typically buy some or all of their power on the open market, through contracts for electrons put on the power grid, and then resell it to their community customers through their own distribution system.

This is a very common practice and often very economical. Iowa communities which use this arrangement — and have done so for generations — include Waverly, Ames, Maquoketa, and Osage, just to name a few. And because they are not beholden to shareholders to produce quarterly dividends like IOUs, they can often sell the power for less than IOUs.

This is the option that Decorah tried to pursue in 2018 and is now proposing again. By regulation, however, it cannot do so without approval from the citizens, or the Iowa Utilities Commission. Hence the March 4, 2025, vote. It is very important to understand that a citizen vote to pursue this option is just that: an option for Decorah. Outside of education and administering the vote, it commits the city to nothing, in spite of what Alliant and others may claim.

Why should we investigate or pursue this power option? In a word, money. State records clearly show that Decorah residents and businesses and other Alliant Energy customers are paying higher electrical rates than nearly all of Iowa. In most cases, 49-60 percent higher.

Yet, Alliant continues to put out propaganda to Decorah customers that they are very competitive with much of Iowa — not true — or we will lose reliable service through our own MEU  —not true — and that a “yes” vote will automatically commit us to higher utility rates — not true — and hundreds of millions of dollars in equipment investment — certainly, not true.

Meanwhile, in spite of promising to not raise rates for two years, approximately six months after the 2018 vote, Alliant filed for a 24 percent rate increase with the IUC. Since then, they have raised our rates twice and have now filed for another rate increase.

The bottom line, a “yes” vote in March only gives Decorah the legal option to explore the feasibility of an MEU. That’s it. Nothing more.

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