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Municipal utility spreads Christmas spirit with lighting contest

What started out as a plan to build community involvement—and a little electrical load—has become a Christmas tradition in Graettinger, Iowa, population 900.

Like many municipal utilities serving rural Midwestern towns, Graettinger Municipal Light Plant struggled with a shrinking population base, especially in the '80s. "The board of directors was looking for a way to boost electricity sales and to remind people about the benefits of a local, public utility," said Scott Tonderum, GMLP general manager since 1994.

Free lighting increases participation

They came up with the idea of a Christmas lights contest in 1985. Businesses and homes decorated for the holidays and vied for prizes. GMLP drafted a panel of residents to judge the entries and awarded $50 to the most lavishly decorated house in town. Second- and third-place winners received $35 and $25 respectively. An honorable mention category has since been added with 10 prizes of $10 each.

Starting in 1990, GMLP introduced a new promotion to the popular contest by giving away free lights. Each household could pick up its complementary string of lights at the GMLP office. "The lights really motivated people to get involved in the contest," recalled Receptionist Myrtle Erb, who coordinates the distribution.

At the time, energy-efficient decorative lights were not widely in use. Even though the goal of the promotion was to build load, GMLP wanted to do it wisely, so, "We provided the energy-efficient lights as soon as they were available locally," Tonderum said.

Funds for purchasing the lights and for the prizes came from the utility's general budget. "The board approved the promotion hoping to get a return in additional electricity sales," explained the general manager.

Simple logistics

The contest and light giveaway resulted in only a modest boost to sales, but significant return in public involvement. About 50 to 80 homes and businesses participate in the contest each year, or between 5 and 9 percent of GMLP customers. Erb estimates that the utility has given out more than 500 light strings since it added the giveaway to the contest.

For the first few years, GMLP ran advertisements in the local newspaper to announce the contest to Graettinger residents. "We still run the ads," said Tonderum, "mainly as a reminder and to let people know when they can come in to pick up their lights."

The utility quickly learned to insist that customers pick up their own light string in person. With such a small population, it isn't hard to keep track of contest participants. "I just write down their names and whether they take colored or clear lights," Erb said. "We don't need a complicated system."

The contest generates additional publicity each year when the Graettinger newspaper runs a story and pictures of the winning houses. The winners often take out newspapers ads to thank the community. "People really do get a kick out of the competition," Tonderum noted.

Incentives, projects add year-around load

It takes more than an annual bump in the electrical load, however, to keep a city in economic health. GMLP, a member of the North Iowa Municipal Electric Cooperative Association, has worked with the city and other utilities bring in more meters.

New home builders can apply to the utility for an incentive of $1 per square foot up to 1,500 sq. ft. or $.75 per sq. ft. up to the same cap for moving a pre-owned house into town. The housing incentive is matched by the City of Graettinger which provides water, sewer and gas utilities, and Rivervalley Telecommunications which provides phone, internet and cable TV services. "It's an aggressive program that has brought about 40 to 50 new and relocated houses into town over the last 12 years," said Tonderum.

In another joint venture, the Graettinger Development Group built a 20,000-sq. ft. spec building in partnership with Energy Panel Structures, Inc. Corn Belt Power Cooperative provided low interest financing for the construction, and GMLP provided power to the project.

Located in Graettinger since 1981, EPS manufactures the structural insulated panels that were used in the pre-engineered construction of the spec building. The market for SIPs has soared in recent years due to the high energy efficiency rating of this type of construction. The company has grown to the point of needing additional space for expansion and ended up purchasing the spec building.

Graettinger Municipal Light Plant doesn't expect the successful economic development project to replace its popular Christmas lighting contest, though. An innovative utility can increase electricity sales year around, but the chance to visit with customers, encourage a little friendly competition and brighten up the city comes but once a year.