The Free Press, Mankato, MN

Local News

October 28, 2009

Janesville plans switch for better power rates

By Brian Ojanpa

JANESVILLE — The city of Janesville wants to save money long term by flipping the switch on a new power provider.

The City Council is making a request to join the Heartland Consumer Power District of South Dakota in 2011.

The city has given its notice of withdrawal from the 12-city Central Minnesota Municipal Power Agency, of which it has been a member since the mid-1990s.

Mayor Al Grams said the city is being proactive in its move to switch providers.

“We wanted to stay ahead of the game,” he said.

Janesville Public Utilities Commission Chairman John Gardner said Heartland’s rates are currently comparable to Central’s rates, but Heartland membership appears to be more advantageous in the long run because it takes the middleman out of the equation.

“Central is a wholesaler of power. They buy power on the market. Heartland produces its own power and is an entity of the government of South Dakota,” Gardner said.

He said that autonomy led the Utilities Commission to recommend a switch to the City Council.

The city hired a consultant more than a year ago to analyze Janesville’s electric utility structure.

Gardner said the analysis revealed that, based upon power cost data of other southern Minnesota cities affiliated with Heartland, Janesville would have realized significant savings had it also been a Heartland member.

Gardner said Central officials’ plea to retain Janesville as a customer wasn’t convincing enough for the Utilities Commission.

“As I saw it, it was too little, too late.”

Janesville’s ongoing contract with Central expires in 2011. Heartland has stipulated the contract with Janesville would be for 30 years.

“That’s the scary part,” Gardner said. “We believe we’re doing the best thing with our customers in mind, but only time will tell.”

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