Utility program provides incentives

At the Tuesday, May 16, Waseca council meeting, Economic Development Authority Manager Tina Wilson shared information about the Southern Minnesota Municipal Power Agency (SMMPA), a program meant to incentivise new businesses and economic development by providing discounts on the cost of utilities. It is a program that Waseca Utilities is considering.

Dubbed the “Waseca Utilities Economic Development Program,” it gives businesses potential to qualify for an economic development credit that lasts five years. The first year would be a full credit; the amount would decrease incrementally each year. After the allowed five-year period, the business would pay for the full electrical credit.

Those who would qualify for the program are new businesses using the Waseca electrical utility with a load of 250 kilowatts or greater, existing customers adding a new incremental connected load of 250 kilowatts or greater, or existing customers in distress that “have legitimate opportunities to move operations outside of Waseca’s utilities service area.” Those who exceed the demand of Waseca utilities’ tenth-largest current retail customer (about 110 kW) could also be eligible.

“This would not come out of the city’s pocket,” Wilson explained. “It’s coming out of the SMMPA’s economic fund.”

The credits the city chooses to purchase benefit the SMMPA. “It’s part of why they support this type of infrastructure,” she said.

However, Wilson added that if someone came in requiring expansive infrastructure improvement or additions, the credit opportunity could not go toward that. “It can only go toward load usage,” she elaborated.

In order to qualify, she explained, businesses have to show they’re in distress. If they receive economic distress money from the state, depending on the program, it can either help or hinder their ability to put in an application.

“The incentive is to keep businesses here,” Wilson said.

One caveat she noted is that the businesses applying for this credit must also look at other city supported energy efficiency programs.

“When it comes to new or expanding businesses or the application process, the city utilities make that decision,” she said. “A retention project could come to the city, but that’s decided by the SMMPA board of directors.”