CEDAR RAPIDS- A four-fold increase in steam heat rates has many building and business owners in downtown Cedar Rapids scrambling to find alternatives. But the city of Cedar Rapids is weighing some ideas to assist customers. And that could include buying down some of the new higher rates.

The Alliant Energy plant that burned coal to product electricity and the low pressure steam for downtown fell victim to flood waters in June. Alliant has brought in temporary gas-fired boilers to produce steam for heat this winter. But the company has told customers that steam will cost more than four times the previous rate.

As an example of what that means, consider the Iowa Masonic Library located on First Avenue N.E. The Masons spent about $8,000 last year on the steam to heat their 80,000 square foot library. They consider that a very economical rate for a large commercial building.

But the new steam rates in effect now will boost that heating bill to about $35,000. Library managers are considering switching to electric boilers to provide heat. But when told the city council is thinking about subsidies to keep the steam system intact, managers said if anything happens it needs to happen quickly.

Bill Crawford, Masons of Iowa Grand Secretary, said "I hope they can make a decision in the next week or ten days--that would have an impact. But a month or two...it's too late."

Cedar Rapids City Council members discussed the idea of helping out downtown steam customers with skyrocketing prices at a Friday morning council work session. Cheaper steam heat is a big selling point in the downtown area. And some on the council say since downtown provides a big part of the city's tax base, using disaster funding to help subsidize some flood-related price hikes may make sense.

Downtown District executive director Doug Neumann said, "anything helps--I think there are small businesses where a few thousand dollars could make a difference whether they get back in business or not."

Some on the council say another reason to help the 150 or so customers on the downtown steam system may be to keep that system intact for future uses. In future years, it might be possible to burn municipal waste or other sources of power to produce steam and electricity cheaper. But if everybody abandons the system because of galloping prices now, that opportunity would be lost.

Council members made no subsidy promises, but did direct city staff to look at what it might cost. One current estimate is the four-fold increase in steam rates will add about $2 to $3-million dollars to heating bills for downtown customers.

Alliant Energy is expected to say later this month if the coal power plant that produces steam for downtown will get rebuilt following extensive flood damage.